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Vinalines withdraws from Nha Trang Port

Released at: 09:23, 21/03/2015

Vinalines withdraws from Nha Trang Port

Government provides guidance on share sale to Khanh Hoa Provincial People's Committee.

by Son Ho

While Vinalines is to sell 8.5 million shares to the Vinpearl Nha Trang JSC, the remaining 15.07 million shares will be transferred to the Khanh Hoa Provincial People’s Committee, which will become the representative of State capital.

The government has assigned the Ministry of Transport (MoT) to direct Vinalines to builds plans for determining the charter capital. The ministry is also creating an equitization plan to reduce the State’s equity in Vinalines.

The people’s committee has been directed to divest so that the State does not hold controlling shares after the transfer is completed. Funds from the divestment will be provided to the Businesses’ Arrangements and Support Fund, which manages the revenue generated by State capital in enterprises.

In August 2014 the Khanh Hoa Provincial People’s Committee accepted an offer from the Vinpearl Joint Stock Company (under the Vingroup) to purchase 8.5 million shares in Nha Trang Port, valued at VND85 billion ($3.955 million), which is equal to the investment made by Vinalines in the port. The sale is part of the continued restructuring of Vinalines.

In 2014 the Nha Trang Port JSC valued the port at more than VND245 billion ($11.4 million). A preferential sale of shares was made to its employees and trade union, accounting for 2.3 per cent of charter capital, while shares representing 22.6 per cent of charter capital put up for public auction failed to attract investors due to the port experiencing a long period of inefficient operations.

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