Rubber latex being harvested by workers at Binh Phuoc province-based Dong Phu Rubber Co, an affiliate of the Vietnam Rubber Group (Photo: VNA) Hanoi (VNS/VNA) - TheMinistry of Agriculture and Rural Development (MARD) has valued the VietnamRubber Group (VRG), the country’s largest rubber company, at 4 trillion VND (177.78million USD), not including its land, marking another step toward itsequitisation by the end of 2017.
According to a decision signed by MARD lastweek, the company will submit its equitisation plan to the Government thismonth. VRG missed the deadline for its initial public offering (IPO), which wasscheduled for July 2017.
According to deputy minister Ha Cong Tuan,the reason for the delay is the Government’s desire for the IPO to be auditedby the State Audit of Vietnam to ensure the State capital in the company isprotected.
As VRG has a large area of land property,which covers 420,000ha in Vietnam, Laos and Cambodia, the audit must be carriedout carefully, Tuan said. “This is such a big advantage for VRG and the profitbrought by the large area of land could be huge in the future.”
“It will take months to collect feedbackfrom other ministries and sectors on the equitisation plan of VRG, but we haveto be careful to preserve the State capital in the company,” said Tuan.
Nonetheless, deputy minister Tuan and VRGdeputy general director Huynh Van Bao assured local media that the company willcomplete its equitisation by the end of this year and start running as ajoint-stock firm in 2018.
In addition to careful inspection of VRG’sland property, the IPO has also been delayed by the search for a strategicinvestor with specialised knowledge and understanding of the agriculturalsector and the same vision as VRG.
Deputy Minister Tuan and the firm’s generaldirector Tran Ngoc Thuan told Dau Tu (Investment) newspaper that it was hard tofind such a potential investor who can also spend around 5-10 trillion VND topurchase part of the Government capital. The company’s charter capital as ofDecember 21, 2015 was 26.16 trillion VND.
VRG has maintained good performance onrising rubber prices. The rubber price on the Tokyo Commodity Exchange gained0.1 percent to finish the September 15 trading at 221.4 JPY per kilogramme.
In the first six months of 2017, VRG posted 8.1 trillion VND in revenue and 1.5 trillion VND in post-tax profit, increasesof 46 percent and 169 percent from one year ago. The figures helped VRGcomplete 33 percent and 47 percent of its targets for 2017.-VNA
According to a decision signed by MARD lastweek, the company will submit its equitisation plan to the Government thismonth. VRG missed the deadline for its initial public offering (IPO), which wasscheduled for July 2017.
According to deputy minister Ha Cong Tuan,the reason for the delay is the Government’s desire for the IPO to be auditedby the State Audit of Vietnam to ensure the State capital in the company isprotected.
As VRG has a large area of land property,which covers 420,000ha in Vietnam, Laos and Cambodia, the audit must be carriedout carefully, Tuan said. “This is such a big advantage for VRG and the profitbrought by the large area of land could be huge in the future.”
“It will take months to collect feedbackfrom other ministries and sectors on the equitisation plan of VRG, but we haveto be careful to preserve the State capital in the company,” said Tuan.
Nonetheless, deputy minister Tuan and VRGdeputy general director Huynh Van Bao assured local media that the company willcomplete its equitisation by the end of this year and start running as ajoint-stock firm in 2018.
In addition to careful inspection of VRG’sland property, the IPO has also been delayed by the search for a strategicinvestor with specialised knowledge and understanding of the agriculturalsector and the same vision as VRG.
Deputy Minister Tuan and the firm’s generaldirector Tran Ngoc Thuan told Dau Tu (Investment) newspaper that it was hard tofind such a potential investor who can also spend around 5-10 trillion VND topurchase part of the Government capital. The company’s charter capital as ofDecember 21, 2015 was 26.16 trillion VND.
VRG has maintained good performance onrising rubber prices. The rubber price on the Tokyo Commodity Exchange gained0.1 percent to finish the September 15 trading at 221.4 JPY per kilogramme.
In the first six months of 2017, VRG posted 8.1 trillion VND in revenue and 1.5 trillion VND in post-tax profit, increasesof 46 percent and 169 percent from one year ago. The figures helped VRGcomplete 33 percent and 47 percent of its targets for 2017.-VNA
VNA
