Ministry says proceeds from Sabeco stake sale for public investment

Created 27 December 2017
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HCMC – The sum of nearly US$5 billion raised from the sale of shares in Saigon Beer-Alcohol-Beverage Corporation (Sabeco) will not be used for debt payment but for public investment, said Dang Quyet Tien, director of the Corporate Finance Department of the Ministry of Finance.

Kết quả hình ảnh cho Ministry says proceeds from Sabeco stake sale for public investment

At a press conference on December 25, Tien said the amount would be included into a State-owned enterprise equitization fund established by the ministry at the State Treasury and used for investment in accordance with a resolution of the National Assembly, the news site infornet.vn reports.

The fund was created at the State Treasury to ensure transparency as the State Audit Office of Vietnam will annually inspect the fund’s balance sheet, Tien added.

The use of money raised from Sabeco and Vinamilk share auctions will be decided by the National Assembly. Mid-term public investment projects will receive VND2,000 trillion (US$88.11 billion) including VND25 trillion generated from equitization of State-owned firms.

Tien also explained why a foreign investor was allowed to control a Vietnamese brand in the Sabeco stake sale, saying the auction was made transparent and Vietnam Beverage Co Ltd is a legitimate investor.

Current regulations have limited foreign room, so international enterprises cannot make direct investments. They have to establish a Vietnamese entity to acquire a large number of shares in domestic firms, showing that they are keen on Vietnamese brands.

Tien proposed amending some prevailing regulations to make conditions favorable for such investors.

On December 18, Vietnam Beverage Co Ltd, a Vietnam-based unit of Thai Beverage Public Co Ltd, successfully bought a 53.59% stake in Sabeco for over US$4.8 billion, or at VND320,000 a share.

 

Source: ThesaigonTimes

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