SCIC plans to divest from FPT Telecom in 2017

The State Capital Investment Corporation (SCIC) is likely to divest from FPT Telecom early next year, according to Mr.Dang Quyet Tien, deputy director of Corporate Finance Department under the Ministr

This move is a part of the SCIC’s efforts to withdraw capital from several major enterprises in early 2017. The SCIC will sell its entire 50.16 percent stake in the telecommunications firm, which registered charter capital of more than 1.37 trillion VND (61.99 million USD) with the Vietnam Securities Depository, Mr.Dang Quyet Tien said.

The depository certified FPT Telecom as listing about 1.37 million shares, coded FOX with a face value of 10,000 VND each, on the Unlisted Public Company Market earlier this month.

According to FPT Telecom’s third-quarter financial report, the company earned 4.92 trillion VND in net revenue from sale of goods and services in the first nine months of this year, up 20 percent over the same period last year while the company’s pre-tax profit in the nine months reached 848.46 billion VND, an increase of 5 percent compared with same period last year.

FPT Telecom is a subsidiary company of FPT group – a technology giant in Vietnam which holds 45.64 percent stake in the company. FPT Telecom also contributed about 40 percent to the annual profit of its parent group.

FPT Telecom has paid dividends in cash at a rate of 40 percent every year – a “golden” level in the local market. Besides FPT Telecom, the SCIC is taking steps to withdraw capital from 9 major businesses as the requirement of the Government in earlier this year including Bao Minh Insurance Corporation, Vietnam Infrastructure Investment & Development JSC, Ha Giang Mineral Mechanics JSC, and Vietnam Dairy Products JSC (Vinamilk), Vietnam National Reinsurance Corporation, Tien Phong Plastic JSC, Binh Minh Plastic JSC, Sa Giang Import Export Corporation and FPT group.

Recently, the SCIC has auctioned a 9 percent stake of Vinamilk on the Ho Chi Minh City Stock Exchange. It sold a stake of 5.4 percent to foreign investors, gaining more than 11.28 trillion VND.

Source: VNA