Coal Industry Accelerates Equitization Process

The renovation committee under the ministry of industry has just discussed the approval of equitizing 5 enterprises of Vietnam coal and mineral industry corporation. The coal companies HATu, Coc Sau ,Cao Son; auto engineering factory of Uong Bi and one member limited coal company, Cam Pha electrical equipment manufacturing company will be equitized with nominal capital of VND330 billion.

 

 Deo Nai Coal Company and the southern one member limited coal processing company have just been approved for equitization. Additionally, the coal and mineral corporation has also completed ,ahead of the deadline, the procedures for the company reform for this year.

 

The method of this equitization is to sell part of the state capital in the enterprises.

Vietnam coal and mineral corporation is the state ownership representative, holding the dominant shares (over 50 per cent); shares sold to the employees accounting for 29 per cent, shares sold publicly by auction accounting for 20 per cent of the nominal capital. The initial price is expected to range from VND10,100 to 10,500 a share.

 

The representative from the renovation committee of Vietnam Coal and Mineral Corporation says the 2006 plan is scheduled for the equitization of seven enterprises and the methods of equitization have also been submitted for the ministry’s approval.

 

For the time to come, the corporation will hold conferences with domestic and foreign enterprises to introduce and advertise the business and production activities of the five member companies before the public auction of sales of these companies’ shares.