Specifically, Taekwang Power Holdings, a subsidiary of Taekwang Corporation, is considering to acquire 29% shares of PV Power.
Taekwang Power Holdings is considering to acquire 29% shares of PV Power.
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Taekwang Corporation was the first South Korean's companies to invest in Vietnam and has been operating in the country for more than 20 years, according to the President and CEO of Taekwang Power Holdings, Sang Rok Kim at the meeting.
Currently, Taekwang Power Holding is the main investor of the 1,200 MW Nam Dinh Thermal Power Plant. The project has total investment of US$2.3 billion, which is under financial arrangement, Kim said.
PVPower has raised US$308 million (VND6.996 trillion) by selling 20% shares in an initial public offering (IPO) on the Hanoi Stock Exchange on January 31.
With total shares offering of 468 million shares and initial price of VND14,400 (US$0.6) per share, the proceeds were 4% higher than the government's expectations of at least $295 million from the IPO.
The market capitalization of PV Power at the share price of VND14,400 is estimated at US$1.48 billion while its charter capital is projected at VND23.4 trillion (US$1.04 billion) after the equitization process is completed.
According to estimates by Ho Chi Minh City Securities Corporation (HSC), PV Power's net sales in 2017 stood at VND31.5 trillion (US$1.38 billion), up 12% year-on-year, while its after-tax profit stood at VND1.9 trillion (US$83.6 million), up 25%.
PV Power is the second largest electricity provider in Vietnam in terms of capacity, only behind Vietnam Electricity (EVN) that holds 61% of the market share.
Meanwhile, Vietnam is one the fastest growing electricity markets in Southeast Asia, with an average growth demand in the next 3 years expected at 10%. PV Power, thus, expects to increase its current supply of 12% of the country's total electricity produciton to15% by the end of 2026. Under its own assumptions, by that time, PV Power's electricity generation capacity will increase by 160% from 4,208 to 10,958MW, mainly thanks to the construction of thermal power plants.
