Lack of interested investors stall scheduled divestiture.
Bidding for shares in seven companies under the control of Vietnam Posts and Telecommunications Group (VNPT) was cancelled due to a lack of interest among investors.
Wall Street Securities said that until 3pm on March 27 there were no investors registering to buy shares in Vung Tau Post & Telecommunications Construction and Investment Joint Stock Company (VPC), Hue Post Office Construction and Equipment JSC, Da Lat Post-Telecommunication Construction & Service JSC, Bac Lieu Post-Telecommunication Construction JSC, and Vietnam Investment Foundation (VIF).
From the view of Vietcombank Securities Co Ltd (VCBS) the situation also happened to Post Construction in the Middle of Vietnam JSC and Da Nang Computer and Telecommunication Design JSC.
Hence, the expected schedule to bid for shares until March 31 couldn't happen.
VNPT should have offered shares in its 14 companies in the first quarter, however, half of them couldn't meet this schedule. Even so, according to a decision from the Prime Minister in 2014, VNPT must divest all of its capital in 63 companies not related to its main field of business.
At the time Mr. Tran Manh Hung, General Director of VNPT, affirmed that the stock market was the best choice to divest VNPT's capital. The group set goals to divest around $56 million in the first quarter of this year.