Talanx AG explored the opportunity to increase its shareholdings in PVI to over 49% by purchasing shares currently owned by PetroVietnam (PVN), said Hinch in a meeting with the Deputy Prime Minister Vuong Dinh Hue on April 20.
PVI buliding.
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Hinch recommended the government to consider increasing the foreign-ownership ratio at PVI to over 49%.
At the meeting, Hue informed in spite of the fast growing in revenue of the life insurance and non-life insurance markets in Vietnam, its contribution still remained modest compared to Vietnam's GDP.
Consequently, Vietnam will restructure the insurance market for better development. Talanx AG's investment expansion in Vietnam, thus, is in line with the government's priorities in restructuring the financial and credit systems, including the insurance market, Hue stressed.
Under the role of a major shareholder, Talanx AG has been essential in improving PVI's corporate governance capabilities and human resources development. According to Hue, the government is intended to divest its entire shareholdings of PVN in PVI, welcoming Talanx AG to acquire the whole share amounts.
The Ministry of Industry & Trade is tasked with review the plan of increasing foreign-ownership ratio at PVI, setting up divestment plan and method.
PVN currently has a 35% stake in PVI, while HDI Global SE holds 47%.
PVI reported consolidated and parent company earnings results for the first half of 2017. For the period, on consolidated basis, total revenue was estimated at VND4.4 trillion (US$192.2 million), fulfilling 108.4% of the 6-month plan, equal to 51% of the annual plan. Pretax profit was estimated at VND310 billion (US$13.5 million), fulfilling 118.5% of the 6-month plan, equal to 52% of the annual plan.
Total revenue of PVN reached VND498 trillion (US$22 billion), an increase of 13.8% over 2017 year's plan and 10.1% comparing to 2016.
PVN consolidated after-tax profit reached VND31.9 trillion (US$1.4 billion), equivalent to a 92% higher-than expected plan. PVN has in turn contributed VND97.5 trillion (US$4.3 billion) to the state budget, up 30.8% of the plan or equivalent to VND22.9 trillion (US$1billion).
