EVN’s Vice President Dinh Quang Tri - Source: EVNEIC
Reporter: What percentage of EVNGENCO 3 share that EVN plans to sell out in the divestment of 2017, sir?
Vice President Tri: According to the Prime Minister’s decision, EVN holds a dominant share (51%) of EVNGENCO 3 until 2 years after equitization (expectedly 2020). EVN will then consider and report to the competent authorities to reduce its capital in EVNGENCO 3 JSC below the dominant level. The reduction of capital at that time will be implemented by EVN in accordance with the laws of Vietnam.
According to the draft plan submitted to the Government, EVN will hold 51% and sell out 49%, in which strategic investors will be entitled to buy at least 36%. EVN will carry out IPO first (equivalent to 13%) and sell to strategic investors later. In case that all the shares are not sold out in the IPO, the remaining shares will be sold to strategic investors.
Reporter: Can you estimate the minimum IPO price?
Vice President Tri: According to the draft equitization plan submitted by the Ministry of Industry and Trade to the Prime Minister, the offering price will be reviewed and approved by the Prime Minister and announced immediately after being approved.
The offering price will reflect the market price of stocks of the power sector of the same type.
Reporter: What is the maximum number of investors that EVN plans to select for EVNGENCO 3, sir?
Vice President Tri: According to the current regulations, EVN is allowed to select up to 3 strategic investors for EVNGENCO 3. The specific number of strategic investors will depend on share selling results in the coming time.
In case there are more than 3 investors and the quantity of shares being registered by investors exceeds the quantity of shares for sale, EVN will organize an auction among strategic investors. The investor offering higher price will be selected.
Reporter: Could you tell me, to this point, how many potential investors that EVN has contacted with?
Vice President Tri: EVN has contacted with many potential investors, both domestic and foreign, having abundant financial capacity from investment funds, large power generation companies or companies investing in power plants, who can be involved in management and operation of a joint stock company and even having capacity to provide fuel for power generation at competitive prices.
By October 2017, 5 investors have worked with EVN showing expectations of becoming strategic shareholders of EVNGENCO 3, including 3 foreign investors.
After the Prime Minister approves the equitization plan, we will continue to work with these investors to officially confirm their expectations of become strategic shareholders of EVNGENCO 3.
Reporter: Which criteria have been set for investors to become strategic shareholders of EVNGENCO 3?
Vice President Tri: EVNGENCO 3 is one of the strongest generation corporations of EVN, inheriting experiences in management and operation of power plants transferred by EVN, gradually developing modern corporate governance ability. The following criteria are set for investors to become strategic shareholders of EVNGENCO3:
- Investors have sound financial capability, with evidence that they have sufficient capital to purchase shares corresponding to their expected purchasing portion.
- Priority is given to investors who are capable of managing and operating power plants; or those associating with other investors in the world with good reputation in power plant management and operation.
- Investors have committed in writing to attach their long - term benefits to EVNGENCO 3 and support EVNGENCO 3 after equitization in: improving the capacity of management and operation of power plants; financial capability; corporate governance; transferring new technologies; human resource training; fuel supply.
Reporter: Yes, thank you!