VnSteel lowering ownership at KMT

                                                   Photo: Duc Anh/Illustration

VnSteel registered to sell over 4.7 million KMT shares, reducing its ownership rate from 82.95 per cent to 36 per cent.

Vietnam Steel Corporation (VnSteel) has registered to sell over 4.7 million KMT shares of Central Vietnam Metal Corporation (Cevimetal).

After the sales, VnSteel will lower its ownership rate from 82.95 per cent to 36 per cent. Expected trading will happen from December 12, 2016 to January 4, 2017 through order matching and agreements. “The target of selling KMT shares is to divest”, said Mr. Doan Phong, member of Finance Department at VnSteel told VET.

KTM shares are traded at about VND 10,000 ($0.44) per share on the stock market. VnSteel will receive about VND47 billion ($2.06 million) based on this price. This share increased significantly in November.

Currently VnSteel holds nearly 8.2 million KMT shares (the rate of 82.95 per cent). After successfully divests, VnSteel will reduce its ownership rate to about 36 per cent of KMT chartered capital.

Cevimetal is a subsidiary of VnSteel. Their main business is supplying different kinds of steel to various projects and importing-exporting metal, steel billets. During the first nine months of 2016, the net sale of Cevimetal reached VND1.3 trillion ($57.22 million). After-tax profit was VND4.8 billion ($211,340) which was twice the amount the same time in 2015.

In the third quarter off 2016, the net sales of Cevimetal reached VND 342.3 billion ($15.05 million). After-tax-profit was VND793 million ($34,907) which was higher than their profit after tax in the second quarter 2016.

The total assets of Cevimetal were worth about VND504 ($22.2 million) in the third quarter 2016. The company equitized and officially went into operation in the form of a joint stock company in January 1, 2006.  Cevimetal has a nationwide network of units; it supplies various kinds of steel with an attractive sales policy.

VnSteel was established by merging Metal Corporation and Steel Corporation. The birth of VnSteel is associated with the history and development of the country's metallurgical industry. It has set a solid foundation for the development of the domestic steel industry. VnSteel operates as a joint stock company with over 50 subordinate units, subsidiaries and associated companies.

The main sectors of VnSteel are steel manufacturing and business and the materials and equipment related to the steel industry. In addition, VnSteel also enhances business areas such as finance investment, port operators, logistics services, warehousing, offices, investment and trading infrastructure of industrial zones and real estate, and labor export.

Along with market development in Vietnam steel, VnSteel also pays attention to sustainably develop the environment, protect it and use national resources reasonably. Moreover, this company takes care of social benefits.

by Hai Van / VET