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Steel firm seeks foreign partners
The Viet Nam Steel Corporation is seeking strategic partners following its reorganisation as a joint venture from October 01, according to the corporation's officials.
Under the equitisation process, 29 per cent of the firm would be offered to foreign strategic investors, leaving the State with a controlling interest of 65 per cent, said General Director Le Phu Hung.
"Next month, we will learn more about interest from some major Japanese steelmakers, including Nipon Steel, JSE, Tokyo Steel, Kobe Steel, Mitsubishi and Marubeni-Itochu," said Hung. "We plan to complete our search for foreign strategic partners in the fourth quarter of next year."
Viet Nam Steel has already received feelers from potential Russian investors such as Novolipetsk Steel Corporation and Evraz Group SA, he said.
The State-owned corporation would reorganise as a joint stock company next month, chairman Mai Van Tinh said on Tuesday, vowing no more delays to its equitisation process.
On June 10, the corporation offered 65.9 million shares, or a 9.7 per cent stake at the initial public offer (IPO) on the Ha Noi Stock Exchange for domestic investors. Shares had an opening price of VND10,100 (US$0.49). After the auction, 39.1 million shares, representing a 5.76-per-cent stake, were sold to investors.
"The IPO will help Viet Nam Steel verify sources of capital, especially from strategic partners," Hung said.
After equitising, VN Steel is expected to increase its charter capital to VND8 trillion ($384.6 million) from VND6.8 trillion ($326.9 million). The corporation would invest VND36.9 trillion ($1.8 billion) in 16 steel projects.
"We are in the middle of constructing the second phase of the Thai Nguyen steel project which will help increase capacity to between 1.5 and 2 million tonnes a year," Hung said, noting another project in Lao Cai that will produce 500,000 tonnes this year and double that when it is completed in 2012.
The corporation targets an after-tax profit of VND670 billion ($31.9 million) this year, VND882.5 billion ($42 million) in 2012 and nearly VND1.1 trillion in 2013. It is expected to pay a dividend of 7 per cent on this year's profits and dividends of 9 to 11 per cent over the next two years.
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