Vietnam to Unload 49% in Giant Builder Becamex IDC

Tuan Minh

12:12 15/06/2017

BizLIVE - The Vietnamese government will sell a majority state in one of the biggest industrial investment and development corporations in the country in a move to attract buyers.

Vietnam to Unload 49% in Giant Builder Becamex IDC

Becamex IDC owns a football team in Vietnam. Photo: thanhnien.vn

The Vietnamese government plans to sell up to a 49% stake in Investment and Industrial Development Corporation (Becamex IDC) as it seeks to attract buyers and accelerate its asset selling program.
Becamex IDC will offer a 25% stake or 329.25 million shares, to strategic investors at the upcoming initial public offering (IPO), the government said on its website, citing a plan approved by the prime minister.
Another 23.63% stake will be sold to the public and the rest to the company’s employees. The state holding in the company will be cut to as low as 51% post equitization.
The 49% stake is much larger than a 25% proposed by the company in early 2016. Investors are interested to buy a large volume of shares to take control of the target company.
The head of Binh Duong province’s government, which owns Becamex IDC, will decide on the initial price for the sales and set criteria for the selection of strategic investors.
Becamex IDC has a registered capital of 13.17 trillion dong ($580 million). It provides construction and development of industrial, residential and transportation infrastructure across southern Vietnam.
The corporation earned a net profit of 691.3 billion dong ($30.45 million) on revenue of 6.06 trillion dong ($267 million) in 2015, up 36.5% and 60.3% year-on-year, according to the company’s latest financial statement.
Becamex IDC and a consortium led by Sembcorp Development - part of conglomerate Sembcorp Industries - are behind the Vietnam-Singapore Industrial Park (VSIP) chain in Vietnam, which has expanded throughout the country.

TUAN MINH

Từ khóa: Binh Duong, IPO, VSIP