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Vinachem to sell all shares in 15 subsidiaries
The Saigon Times Daily
Monday,  Jan 8, 2018,20:37 (GMT+7)

Vinachem to sell all shares in 15 subsidiaries

The Saigon Times Daily

HCMC – The State-owned Vietnam National Chemical Group (Vinachem) will hold stakes of less than 50% in seven subsidiaries and sell all its shares in 15 other companies, the Government news website reports.

Deputy Prime Minister Vuong Dinh Hue has approved a restructuring plan for Vinachem in the 2017-2020 period. The plan is aimed at improving the capacity, and business and production performance, as well as competitiveness of the group.

In particular, the group is responsible for producing and trading in basic chemicals, raw materials for fertilizer and chemical production, phosphate fertilizers, and pesticides.

Vinachem, whose chartered capital is estimated at around VND20 trillion (US$880.5 million) by 2020, is tasked with carrying out an equitization plan for its holding company in the 2018-2019 period. Upon equitization, the Government will hold between 50% and 65% of its chartered capital.

Regarding the restructuring of Vinachem’s subsidiaries until 2020, the group will divest its holdings in the Vietnam Institute of Industrial Chemistry, and restructure the College of Chemical Industry in a simple and effective manner.

Once Ha Bac Nitrogenous Fertilizer and Chemicals Co Ltd, DAP-Vinachem Co Ltd, DAP No.2 Vinachem JSC, and Ninh Binh Nitrogenous Fertilizer Co Ltd enhance their business and production performance, and no longer incur losses, the group will divest all of its capital. It will also equitize Vietnam Apatite Co Ltd with a shareholding of over 65%.

Vinachem will hold stakes of between 50% and 65% in seven member companies including Industrial Gases and Welding Electrode JSC, Viet Tri Chemicals JSC, Southern Basic Chemicals JSC, Lam Thao Fertilizers and Chemicals JSC, Van Dien Fused Magnesium Phosphate Fertilizer JSC, Ninh Binh Phosphate Fertilizer JSC, and Vietnam Pesticide JSC.

The group will hold less than 50% of chartered capital in nine companies, namely Southern Rubber Industry JSC, Danang Rubber JSC, Sao Vang Rubber JSC, Binh Dien Fertilizers JSC, Can Tho Fertilizers and Chemicals JSC, Southern Fertilizers JSC, NET Detergent JSC, LIX Detergent JSC, and Dry Cell and Storage Battery JSC.

The group will withdraw its entire capital from the following 15 companies: Hanoi Soap JSC, Vinh Phu Battery JSC, Tia Sang Battery JSC, Inoue Rubber Vietnam Co Ltd, TPC VINA Plastic and Chemical Co Ltd, South Chemicals Import-Export JSC, Hanoi Synthetic Paint JSC, Duc Giang Chemicals and Detergent Powder JSC, Hanoi Batteries JSC, Vietnam Chemical Import and Export JSC, Ninh Binh Fertilizer Port JSC, Tay Ninh Chemical Industry JSC, Danang Chemical Industries JSC, Mine Construction and Investment Consultancy JSC, and Chemical Engineering Joint Stock Corporation.

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