In early 2007, the Electricity of Vietnam (EVN) has announced it will equitise dozens of member companies. Under the plan, the prospectuses of the equitised companies will be realised in January 2007.
Under the plan, EVN will sell its stakes of Ninh Binh, Thac Mo and Ba Ria power plants on Hanoi and Ho Chi Minh City securities trading centres in the first quarter of 2007. Ba Ria Power Plant is the largest enterprise as it has an assets value of VND2,200 billion (US$137 million). At present, the Power Companies No. 1, No. 2 and No. 3 (respectively operating in northern, central and southern Vietnam) are evaluating their assets values, but, according to EVN, the Electricity Co. No. 1 is the largest. Then, electrical construction consulting companies No. 1, No. 2, No. 3 and No. 4 in Hanoi, Ho Chi Minh City and Nha Trang will have their shares sold on the stock market in 2007.
Schedule
In 2006, EVN completed the equitisation of two power generators (Pha Lai Thermal Power Company and Thac Ba Hydropower Company) and five subsidiaries. The Ministry of Industry also approved the business value of three companies, namely, Ba Ria Thermal Power Company, Ninh Binh Thermal Power Company and Thac Mo Hydropower Company. The equitisation plans by these units have been completed and submitted to the EVN Board of Directors for ratification and to the Ministry of Industry for approval, paving the way for the selling of its stakes to investors and the listing of its shares on the securities trading centres.
Regarding the equitisation of 13 provincial electrical companies under the Power Companies No. 1, No. 2 and No. 3, EVN also instructed these units to cooperate with Corporate Valuing Consulting Co. to complete the corporate-value appraisal documents to submit to the Ministry of Industry in March 2006. However, those provincial power companies have suspended their equitisation plans in order to equitise the Power Companies No. 1, No. 2 and No. 3.
Determination
EVN has built and published its Securities Bulletin Weekly to update information about the stock market in general and the news related to electrical stocks on the stock market, aiming to transfer update news to its staff. The bulletin, regardless of its publication volume and frequency, exposed the determination of the Government and EVN to “socialise” the power industry, diversify the form of ownership and provide transparent financial information to stakeholders.
Right after having been equitised under the plan approved by the Ministry of Industry, these companies like Pha Lai Thermal Power Company and Thac Ba Hydropower Company sold their stakes at auctioning sessions at the Hanoi Securities Trading Centre. These two companies went on the Hanoi bourse on May 19 and August 29, 2006, respectively.
For the time being, Vinh Son - Song Hinh Hydropower Joint Stock Company has listed its shares on the Ho Chi Minh City Securities Trading Centre (HSTC). By late December 2006, Khanh Hoa Power Company will list their shares on this bourse.
In reality, shares of power companies in Vietnam are being hunted by both domestic and foreign investors. If the current rule stipulates that foreign investors are allowed to buy 3 per cent of stakes at the maximum , they can buy up to 49 per cent when the companies are listed. However, no power company has revealed its intention of selling 49 per cent of stakes.
Kim Phuong
Vietnamese
