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|SCIC is planning to sell its entire stake in Haiphong Thermal Power|
These offered shares make up 9 per cent of the charter capital of Haiphong Thermal Power. The initial unit price will be VND26,000 ($1.13), nearly two times higher than the current market price. SCIC expects to earn more than VND1.17 trillion ($50.87 million) in proceeds.
The company was established in 2002 with the purpose to develop a thermal power plant with the initial charter capital of VND3 trillion ($130.43 million). In 2008, the charter capital was increased to VND5 trillion ($217.4 million) in order to implement Haiphong 2 thermal power plant.
In July 2005, Japan's Marubeni Corporation and China's Dongfang Electric Corporation were awarded the construction contract for the 600MW Haiphong 1 with two units. Unit 1 came online in July 2011, and Unit 2 in November 2011.
In November 2006, the company signed a contract, again with Marubeni Corporation and Dongfang Electric Corporation, to build the second, two-unit 600MW Haiphong 2 coal power plant, at the same location.
The first 300MW unit of Haiphong 2 started operating in August 2013, and the second in February 2014. The cost of the entire project was $1.2 billion. Loans were provided by the Export-Import Bank of China and the Japan Bank for International Co-operation.
In 2014, the thermal power company’s shares were officially listed on the UpCOM with the code HND.
At present, Power Generation Corporation 2 is the largest shareholder at Haiphong Thermal Power JSC with 51 per cent of the charter capital, followed by Pha Lai Thermal Power JSC with 25.97 per cent, then SCIC with 9 per cent.
Haiphong Thermal Power has two plants (the above-mentioned Haiphong 1 and Haiphong 2 thermal power plants with a total capacity of 1,200MW) and manages and is allowed to use millions of square metres of land in Haiphong city.
Last year, the company reported a total power output of 8.1 billion kWh, four per cent higher than the target.
The company acquired a revenue of VND11.2 trillion ($486.96 million) last year and pre-tax profit of VND975 billion ($42.39 million), nearly three times higher than its plan.
Back to SCIC, it is not the first time that it plans to divest thermal power plants. In November, SCIC announced to offload its entire stake of 11.42 per cent, or 51 million shares, of Quang Ninh Thermal Power JSC. It expected to collect VND1.22 trillion ($53 million) from the purchase but it failed to find an investor.