Port releases information pertaining to strategic investors in equitization process.
Saigon Port has recently revealed it is seeking strategic investors in implementing its equitization plan. To create favorable conditions for investors, additional information on the rights of strategic investors were revealed in the latest announcement from the Port. Strategic investors will be able to buy shares in Saigon Port set by agreements between the equitization Steering Committee and investors (not through auction) and will not be less than the lowest successful bid in a public auction under Decree No.59/2011/ND-CP.
The most notable point is that, along with other investors, strategic investors will be able to buy up to 20 to 25 per cent of the charter capital of Saigon Port and other investors can purchase shares via auction.
Strategic investors will be able to select representatives for election to the Board of Directors and manager and operator positions at Saigon Port if they own the minimum number of shares prescribed by the Law on Enterprises. Other benefits will be in accordance with the law and any agreement with Saigon Port.
It is expected that Saigon Port will complete its transformation into a joint stock company in the first quarter of 2015. Its value has been put at VND3.955 trillion ($184.95 million) and the value of State capital is VND2.162 trillion ($101.14 million), according to Decision No.656/QD-HHVN dated November 28, 2014 from the Vietnam National Shipping Lines (Vinalines)' Council Members. The expected charter capital of the joint stock company is VND2.162 trillion ($101.14 million) and the form of equitization is partial sale of State capital in the enterprise.
The State will hold 51 per cent of charter capital after equitization, according to Decision No.276/QD-TTg dated February 4, 2013 and Document No.2342/TTg-DMDN dated November 21, 2014 from the government. Decree No.59/2011/ND-CP dated July 18, 2011, states that Saigon Port can select up to three strategic investors when equitizing.
Saigon Port's main business lines are the operation of seaports, cargo handling, transport, warehousing, marine services, and logistics. It is directly managing, exploiting, and investing in key seaports in Ho Chi Minh City and Ba Ria Vung Tau, including Nha Rong Khanh Hoi Port, Tan Thuan Port, Tan Thuan 2 Port, Passenger Ship (Hanh Khach Tau Bien) Port, Saigon - Hiep Phuoc Port, My Phu Steel Plant Port, Thi Vai Synthetic Port, and deepwater ports at Cai Mep - Thi Vai. Saigon Port is also cooperating with prestigious investors in real estate and urban infrastructure to convert the Nha Rong Khanh Hoi Port area into commercial centers, offices, apartments, and hotels, etc., in accordance with planning for Ho Chi Minh City.