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Jun 22, 2018 / 09:10

Vietnam gov't to cut holding in debt-laden Vinalines to 65%

Ngoc Thuy

The Vietnamese government will unload shares in Vietnam National Shipping Lines, known as Vinalines, aiming to cut its stake in the shipping firm to as low as 65%.

Vinalines is scheduled to offer 20% of the company's charter capital in an initial public offering at the Hanoi Stock Exchange for a starting price of VND10,000 (US$0.44), according to the equitization scheme recently approved by Prime Minister Nguyen Xuan Phuc.

The government will retain 913 million shares, equivalent to a 65% stake, out of 1.4 billion shares. Post-IPO, Vinalines will have registered capital of VND14.046 trillion (US$631.8 million).
 
Illustration photo.
Illustration photo.
Another 2.29 million shares or 0.16% of charter capital will be sold to employees, while 207.2 million shares to strategic investors, or 14.8% of charter capital, will be offered to strategic investors.

The firm's IPO has been delayed several times as it needed to undergo a longer-than-expected restructuring process.

Vinalines currently manages and operates a diverse fleet including container ships, bulk carriers, oil tankers, and other types of cargo vessels. The Vinalines fleet has large bulk carriers up to 73,000 DWT, 1,800 TEU container ships, and 50,000 DWT oil tankers.

Of the total of 130.9 million tons of cargo shipped last year by Vietnamese vessels, Vinalines' fleet accounted for 20.2%. 

By the end of 2017, Vinalines completed divestment in 39 companies for VND2.4 trillion (US$105 million) in return, resulting in net profit of VND360 billion (US$15.8 million).

Overall, the firm saw its debt reduced by VND10.6 trillion (US$440 million) in period 2014 - 2017, according to Le Quang Trung, Vice General Director of Vinalines. 

Additionally, its member companies also reduced debts by VND2.3 trillion (US$101 million). As of December 31, 2017, Vinalines' debts owned to banks totaled VND14.7 trillion (US$646 million), including original value of VND11.3 trillion (US$497 million) and unpaid interest of VND3.3 trillion (US$145 million). 

Vinalines' consolidated revenue in 2017 was reported at VND16 trillion (US$712 million), 14.8% higher than the annual target, posting a net profit of VND515 billion (US$23 million).   

The firm set the target of transporting 21.4 million and handling 97.8 million tons of cargo at domestic ports in 2018. Consequently, its revenue is expected to reach VND13.6 trillion (US$603 million), with a profit of VND667 billion (US$29.6 million). 

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