Vinacomin Completes Divestment from Finance, Banking and Insurance Sectors

11:28:11 AM | 9/15/2014

At a recent review meeting on the progress of implementing the Prime Minister’s Decision 314/QD-TTg approving the Vinacomin Restructuring Scheme for the 2012-2015, Vietnam National Coal, Mineral Industries Holding Corporation Limited (Vinacomin) announced to have completed its divestment from finance, banking and insurance sectors ahead of schedule.
Vinacomin said it sold all stake in SHB Insurance Company (SVIC), Saigon Hanoi Bank (SHB), VNA Insurance Company, SHS Securities Company, and Vinacomin Finance Company for VND1,503 billion (US$71 million).
In addition, Vinacomin completed the dissolution of coal production subsidiaries and transformed them into its branches. It also transformed four subsidiaries of its subsidiaries into branches of its subsidiaries.
Besides, to date, Vinacomin has completed equitising three out of eight target units, including Vinacomin - Material, Transport and Stevedoring Company, Thai Nguyen Nonferrous Metals Company affiliated to Vinacomin Minerals Corporation, and Technology Development and Mining Equipment Company under the Institute of Mining Science and Technology.
In the coming time, Vinacomin will carry out equitisation plans for four units, including Vinacomin Electricity Corporation, Vinacomin Minerals Corporation, Viet Bac Mining Industries Corporation, and Vinacomin Shipbuilding Mechanics Company.
Currently, the Vinacomin Equitisation Steering Committee is assessing equitisation plans and processes and will submit them to the group’s Board of Members in late August 2014 and then to the Ministry of Industry and Trade for appraisal, which will be forwarded to the Prime Minister for approval in September and October 2014.
Besides, Vinacomin completed transforming Quang Ninh Coal Processing Company into a branch and reorganising Uong Bi Coal Co., Ltd from a two-tier governance model into a one-tier model to make it a branch too. It also reshuffled Vinacomin Mine Geology Co., Ltd from a two-tier governance model into a one-tier model to prepare for the next step of restructuring and transformed Lam Dong Aluminium Co., Ltd from a two-tier governance model into a one-tier model to improve management, reduce units and increase operating efficiency.
Vinacomin also completed independent audit reports and related documentations for submission to the court on the dissolution of Song Ninh Shipbuilding Company. However, complicated procedures have slowed down the dissolution process, company officials said.
The group will continue with the equitisation of its units in 2015 while ensuring the protection of State-owned capital.
Huong Ly