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EVN divests over $32 million in capital from non-core areas

Released at: 11:31, 12/01/2015

EVN divests over $32 million in capital from non-core areas

Figure around 40 per cent of total divestment required.

by Son Ho

Electricity of Vietnam (EVN) has reported it has divested from non-core businesses to the tune of VND691 billion ($32.235 million), or 40.8 per cent of the required divestment of nearly VND1.7 trillion ($79.305 million).

Of these, it fully divested from two real estate companies - Saigon Vina Real Estate Joint Stock Company and Central Power Real Estate Joint Stock Company. Divestment from the banking, insurance and real estate sectors has been prioritized.

EVN still has three organizations with which it is waiting for divestment approval from the Ministry of Industry and Trade (MoIT), including An Binh Bank (ABBank), where it holds 16 per cent of shares. EVN planned to auction these shares recently but the Prime Minister directed it to cease and assigned the State Bank of Vietnam to organize the sale.

EVN also submitted a proposal to auction shares in An Binh Securities Company to MoIT in 2015. Its investment in the company stands at more than VND100 billion ($4.665 million).

Regarding the Global Insurance Corporation, EVN has already sold 2.5 per cent to a foreign investor. It submitted a plan to MoIT in 2014 to hold a further auction, which should be conducted this year.

According to the restructuring proposal approved by the Prime Minister, EVN is to fully divest from An Binh Bank, An Binh Securities, the Global Insurance Corporation, the Central Power Real Estate Joint Stock Company, the Saigon Vina Real Estate Joint Stock Company, and the Vietnam Electricity Investment and Build Corporation this year. It must also reduce its investment in the EVN Finance Joint Stock Company under the Law on Credit Institutions.

EVN will also submit a plan to MoIT and the government to equitize the Power Generation Corporation 3 by December this year.

EVN reported that, in 2014, electricity produced and purchased reached 142.25 billion kWh, a 10.76 per cent increase against 2013. Commercial electricity stood at 128.43 billion kWh, 10 per cent higher than in 2013.

Of this, electricity for industry accounted for 53.9 per cent, a 13.59 per cent increase, and electricity for business, services and consumption increased around 44.4 per cent. Revenue from electricity sales is estimated at VND196.37 billion ($9.16 million), 13.57 per cent higher than in 2013.

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  • EVN
  • divestment

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