PM approves VEAM privatisation plan

After the equitsion plan, VEAM will have charter capital of VND 一 三. 二 八 trillion. —  Photo baodautu.vn

HÀ NỘI  — The Prime Minister has approved a privatisation plan for the Việt Nam Engine and Agricultural Machinery Corporation (VEAM). The plan will involve the sale of part of the state’s shares, as well as issuance of more shares to increase charter capital.

After privatization, VEAM will have a charter capital of VNĐ 一 三. 二 八 trillion (US$ 五 九 五. 三 million), equivalent to  一. 三 二 八 billion shares. The State will hold a  五 一 per cent stake in VEAM.

Meanwhile, strategic shareholders will hold  三 六 per cent and employees will hold 0. 四 per cent stakes in VEAM. The rest of the shares will be sold at its initial public offering (IPO) auction.

The IPO auction will take place at Hà Nội Stock Exchange. The Ministry of Trade and Industry will represent the state’s capital investment in the company and decide the starting price for the IPO auction.

VEAM is also required to separate the value of the Yên Thành Tapioca Factory from the company’s total value, then hand over the factory to the Research Institute of Agricultural Machinery.

VEAM was established in  一 九 九0. It mainly manufactures machines for the agricultural, forestry and fishery industries, as well as trucks which are assembled at VEAM Motor, an assembling factory which opened in late  二00 九. — VNS