Scandal-hit Vietnamese firm cleans up $5 mln from share sale

By Dam Tuan   July 25, 2016 | 04:41 pm GMT+7

SBIC has turned a surprise profit by selling its stake in an aircraft leasing company.

Vietnam Ship Building Industry Corporation (SBIC) has successfully sold more than seven million shares, equivalent to a 5.34 percent stake, in Vietnam Aircraft Leasing Company (VALC) for VND116.8 billion ($5.25 million).

SBIC, formerly known as Vinashin, became infamous for a high-profile embezzlement scandal in 2010. With the sale, it has offloaded its entire stake in the state-owned aircraft leasing company.

With bids rising to VND16,600 ($0.75) from the original offering price of VND11,600, SBIC cashed in on $5.25 million, while the book value was only $3.14 million. Remarkably, the shares were bought up by a single investor.

SBIC said the divestment will help it restructure its capital and investments in other firms.

scandal-hit-vietnamese-shipping-firm-cleans-up-5-mln-from-aviation-stake-sale

SBIC has stepped up its restructuring of capital and investment by divesting from other firms. Photo from VALC.com.vn

VALC is the only company in Vietnam that leases aircraft, spare parts and ground handling equipment, as well as purchasing and operation management services for private aircraft. It also invests in taxi and airport services.

VALC was established in 2007 by the Bank for Investment and Development of Vietnam (BIDV) and Vietnam Airlines.

Its revenue reached $76.6 million last year, with post-tax profits reported at $19.5 million and total assets of over $723 million. Its fixed asset/total asset ratio was 92.23 percent at the end of last year, while its liabilities/total asset ratio was 86.95 percent .

In April 2016, the Hanoi-based company projected revenue of $68.5 million for 2016, down 10.81 percent from 2015, and post-tax profit of $15.15 million, down 22.31 percent.

Related news

> PM calls for faster privatization of state-owned firms

> Vietnam's leading state owned giant Vinamilk says scrapping foreign ownership cap

> Vietnam to raise $90 million by selling stakes in state owned enterprises

 
 
go to top