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Banking & Finance

Government pushes SCIC to divest

Released at: 19:07, 14/10/2015

Government pushes SCIC to divest

State Capital Investment Corporation directed to create a suitable timetable for full divestment from State holdings.

by Hung Nguyen

Deputy Prime Minister Vu Van Ninh has directed the State Capital Investment Corporation (SCIC) to choose an appropriate time to completely divestment from ten large companies where the State holds capital.

Under Document No. 1789/TTg-DMDN the SCIC’s holdings in the FPT Corporation (6 per cent) and FPT Telecom (50.2 per cent) are to be fully divested. Others where divestment has been directed include the Bao Minh Insurance Corporation (50.7 per cent), the Vietnam National Reinsurance Corporation (40.4 per cent), and the Binh Minh Plastic Joint Stock Company (38.4 per cent).

The SCIC’s full divestment from the Vietnam Dairy Products Joint Stock Company (Vinamilk) would be a major move, as it owns 45.1 per cent of the company’s value, or about $2.4 billion. SCIC may receive a total return of $3 billion.

In the first half of this year SCIC’s revenue stood at VND4.93 trillion ($220.12 million), an increase of 62 per cent against the same period of 2014, while after-tax profits were at VND3.58 trillion ($159.87 million).

Shares in these companies trended upwards on the morning October 14, especially Binh Minh Plastic, which increased 7.86 per cent, and FPT Corporation, which increased 3.08 per cent.

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