|According to forecasts, the divestment deal at Sabeco will receive the attention of investors in 2021.|
Name a series of construction firms
According to the list of divestment published by the SCIC, in 2021, this firm will divest at 88 units (three more firms than the list in 2020). In this list, a series of big companies will be withdrawn by the SCIC according to the schedule specified in the Prime Minister’s Decision No. 908/QD-TTg dated June 29, 2020 on approving the list of State-owned firms to divest until the end of 2020.
It is not difficult to recognise the businesses of construction sector in this list with a series of popular firms, led by Song Da Corporation – JSC. The SCIC currently manages nearly VND4,486 trillion of State capital, accounting for 99.79% of the charter capital of Song Da Corporation.
Along with that is the Construction Materials Corporation No. 1 (FICO) – a joint stock company with the State capital managed by the SCIC of VND509 billion, accounting for 40.08% of the charter capital, Vietnam Water and Environment Investment Corporation – JSC currently has nearly VND570 billion of State capital, accounting for 98.16% of the charter capital of this unit and Vietnam Construction Consulting Corporation – JSC with about VND312 billion of State capital, accounting for 87.32% of charter capital.
These four firms have just been transferred to the SCIC by the Ministry of Construction in September 2020. According to the signed transfer minutes, the value of State investment in these four firms is more than VND5,900 billion.
Besides the above firms, a series of construction firms also appeared in SCIC’s list of divestments in 2021 such as: Can Tho Industrial Park Infrastructure Construction JSC, Vinh Long Real Estate JSC, Construction JSC, Binh Duong Investment Consultant, Dak Lak Housing Investment and Construction Joint Stock Company, Binh Duong Construction and Public Service Joint Stock Company, Ben Tre Building Materials JSC, Chau Duc Urban Development and Construction JSC, Can Tho Urban Development and Construction JSC, Thanh Hoa Industrial Park Infrastructure Investment JSC and Thai Nguyen Industrial Park Infrastructure Development JSC.
The list of divestment this time also points to the name of Licogi Corporation – JSC. This firm has been equitised since 2016 and has been transferred to the SCIC by the Ministry of Construction since 2018. According to the transfer minutes, the value of State investment in Licogi transferred to the SCIC is VND366.4 billion, accounting for 40.72% of Licogi’s charter capital.
The SCIC’s list of divestment this year also includes many firms in the transport industry like Transport Construction Corporation 8; Thang Long Corporation; Joint Stock Company Road Bridge Management II Quang Ninh; Kon Tum Bus Station Joint Stock Company, Quang Ngai Bus Station Joint Stock Company, Lam Dong Road Construction and Management Joint Stock Company, Quang Nam – Da Nang Road Construction and Management Joint Stock Company, and Inland waterway management joint stock companies No. 4, 7, 9, 10, 11, No. 12, 13, 14 and 15.
Many big companies on the sale
The most notable in the SCIC’s list of divestment this year is Saigon Beer – Alcohol – Beverage Corporation (Sabeco). The SCIC is currently managing State capital of up to VND2,300 billion (accounting for 36% of Sabeco’s charter capital) with a total of nearly 231 million shares held by the State.
Previously, in August 2020, Sabeco was handed over to the SCIC by the Ministry of Industry and Trade under Decision 908 to divest all state capital in this firm.
The current market price of SAB shares is VND150.2 thousand per share, the total value of these shares is nearly VND34,546 billion. It is forecasted the sale of capital at this firm will attract the attention of many investors, because previously, during the divestment at Sabeco in 2017, the Ministry of Industry and Trade collected nearly VND110 trillion, equivalent to nearly USS$5 billion. However, according to experts, interest in Sabeco this year has decreased compared to 2017, so the sale of capital needs to be calculated carefully.
Along with Sabeco, this year, the SCIC continues to divest from a series of giants such as Vietnam Textile and Garment Group (currently the State capital managed by the SCIC is nearly VND2.68 trillion, accounting for 53.49% of charter capital); Vietnam Fisheries Corporation – JSC (Seaprodex) currently the SCIC holds VND792 billion of State capital, accounting for 63.38% of the charter capital of the firm; Vietnam Vegetable Oil Industry Joint Stock Company with VND442 billion of State capital, accounting for 36.30% of charter capital. Tien Phong Plastics Joint Stock Company is also on the list that the SCIC will divest from this year with an amount of more than VND437 billion, accounting for 37.10% of the company’s charter capital; the Vietnam Vegetable Oil Industry Joint Stock Company with VND442 billion of State capital, accounting for 36.30% of charter capital. Tien Phong Plastics Joint Stock Company is also on the list the SCIC will divest this year with an amount of more than VND437 billion, accounting for 37.10% of the company’s charter capital.
This year, the SCIC will continue to divest from FPT, a leading firm in technology, telecommunications and education. It is expected that this will also be a popular name in SCIC’s 2021 divestment season. The SCIC currently holds a State capital of more than VND460 billion, accounting for 5.93% of charter capital. If the divestment is successful, with the current reference price of VND93,800/share, SCIC is set to earn more than VND4,314 billion. The SCIC’s list of divestments in 2021 also includes “big names” in insurance such as Bao Minh Joint Stock Company, the State capital held by the SCIC is VND463 billion, accounting for 50.70% of the charter capital and Bao Viet Group with more than VND221 billion of State capital, accounting for 3.26% of charter capital.