EVN presents new equtisation plan

The Electricity of Vietnam (EVN) has submitted a new equitisation plan to the government to replace to old one, which targets to equitise all member companies by 2010.
Under the new plan, the equitisation of member units will finish prior to 2008, two year earlier than the previous plan.
According to Dinh Quang Tri, Deputy General Director of EVN, the fast development of the stock market is a good signal for EVN in raising capital.

It was difficult for the corporation to raise capital via this channel in mid-2006 but the situation was different in late 2006 and early 2007. The auctions of shares of power plants attracted hundreds of local and foreign investors.

The prices for shares of some power plants such as the Vinh Son - Song Hinh Hydropower Plant, the Pha Lai Thermo-power Plant and the Khanh Hoa Power Company are very high, from 4 to 9 times more than face values. The dividends of those firms are more than 12% per year, the levels set in their equitisation plans.

Dang Phan Tuong, Head of the EVN’s Equitisation Department, 21 member companies have completed equitisation. They have a total book value of VND13,400 billion (837.5mio US$) but the value defined through equitisation is up to VND19,000 (1.1875 billion US$).

In the new plan of equitisation, which is awaiting the government’s approval, 14 companies that are in equitisation process will finish this job in 2007, including the Ba Ria and Uong Bi Thermo-power Plants, the Thac Mo and Da Nhim - Ham Thuan - Da Mi Hydro-power Plants. Fifteen others will perform equitisation, including Thu Duc, Phu My, Can Tho Thermo-power Plants and the Energy Institute.
EVN also wants to establish 13 new joint stock companies, including the Lai Chau, Ban Ve, A Vuong, Tranh River, Serepok Hydro-power Joint Stock Companies and the Nghi Son and Mong Duong Thermo-power Joint Stock Companies.

Six companies that will complete equitisation in 2008 are the Power Telecom Company, the Tuyen Quang and Dai Ninh Hydro-power Plants, the Hanoi Power One-member Co, Ltd., the HCM City Power Company and the Power Finance Company.

Mr Tuong also revealed that three power plants will auction their shares for the first time in March 2007, including the Ba Ria Thermo-power Plant (around VND120 billion - 7.5mio US$ on March 15), Ninh Binh Thermo-power Plant (VND34 billion - 2.12mio US$) and Thac Mo Thermo-power Plant (VND140 billion - $8.75 million).

Mr Tri said that this year EVN will try to raise VND40,000 billion (2.5 billion US$) and more than VND8,000 billion (500mio US$) in 2008 from selling shares and issuing bonds.

Source: VNN