All State shares to be sold in IPO, primarily to strategic investors.
Prime Minister Nguyen Tan Dung approved the equitization plan for the Vietnam National Tea Corporation (Vinatea) on June 16, with the entire State stake to be sold and additional shares issued to increase its charter capital, which now stands at VND370 billion ($17.2 million).
In its initial public offering (IPO) it will auction 37 million shares at a price of VND10,000 ($0.46) per share. Of this, 63.74 per cent will be sold to strategic investors, 31.62 per cent to other investors, and 4.398 per cent to Vinatea staff.
The sale is to be conducted within three months of the equitization plan being approved.
The PM has assigned the Ministry of Agriculture and Rural Development (MARD) to determine the criteria for selecting suitable and capable strategic investors who will commit to a long-term investment to develop Vinatea. He also appointed the Ministry to take responsibility for the auction and to direct Vinatea in conducting the IPO.
Vinatea’s employee numbers are now 1,319, which are expected to fall to 1,180 after equitization.
Vinatea is one of eleven enterprises with 100 per cent State capital that the PM has requested MARD equitize.