PetroVietnam unveils divestment plans
PetroVietnam is seeking a merger between its financial arm PetroVietnam Finance Corp (PVFC) and a bank in a bid to facilitate its divestment of capital from the financial company to realize the restructuring scheme.
At a regular meeting in Hanoi on October 8, PetroVietnam Chairman Phung Dinh Thuc said that the parent company would not be able to divest capital from PVFC if the company continued to operate under the current business model as this model will no longer exist in the group.
“Therefore, in order to withdraw capital from this company, PVFC will have to merger with a bank to perform their banking functions,” he said, adding the group is actively seeking a trusted bank to make a deal.
The merger will be made under special supervision from the State Bank of Vietnam and the Ministry of Finance, Thuc said. He hopes to reduce the holding in this company to 20 percent by 2015 and then gradually to zero percent later.
At present, PetroVietnam owns over 70 percent of PVFC’s charter capital. Thuc said the group’s restructuring scheme has been basically approved by the Government, adding that its divestment plan will be carried out under a roadmap.
In early September, Prime Minister Nguyen Tan Dung urged PetroVietnam to restructure and divest capital from many subsidiaries and affiliate companies.
The group now has 29 subsidiary and 206 affiliate companies and it expects to reduce these numbers to 24 subsidiaries and 126 affiliates.
“Therefore, in order to withdraw capital from this company, PVFC will have to merger with a bank to perform their banking functions,” he said, adding the group is actively seeking a trusted bank to make a deal.
The merger will be made under special supervision from the State Bank of Vietnam and the Ministry of Finance, Thuc said. He hopes to reduce the holding in this company to 20 percent by 2015 and then gradually to zero percent later.
At present, PetroVietnam owns over 70 percent of PVFC’s charter capital. Thuc said the group’s restructuring scheme has been basically approved by the Government, adding that its divestment plan will be carried out under a roadmap.
In early September, Prime Minister Nguyen Tan Dung urged PetroVietnam to restructure and divest capital from many subsidiaries and affiliate companies.
The group now has 29 subsidiary and 206 affiliate companies and it expects to reduce these numbers to 24 subsidiaries and 126 affiliates.