PV Power preparing for equitization

Equitization for higher operational efficiency

As a wholly state-owned one-member limited liability company, PV Power was established according to the Vietnam National Oil and Gas Group (PVN)’s Decision 1468/QD-DKVN dated May 17, 2007 to produce electricity; repair and maintain power plants; provide materials, equipment and spare parts; import and distribute coal to power plants; and manage and develop power projects.

A PV Power’s representative said that the corporation now has a chartered capital of more than VND21.77 trillion and 2,289 staff members, more than 62 percent of whom have university and higher degrees and are capable of controlling modern technologies and meet the development needs of the sector as well as the international integration process.

PV Power is managing and operating four gas-based power plants, three hydropower plants and one coal-fired thermal power plant with total design capacity of more than 4,208MW, which have all so far supplied over 135.07 billion kWh to the national grid. The power plants have been operating safely and efficiently while contributing significantly to ensuring national energy security and serving socioeconomic development in related localities.

PVN decided to transform PV Power into a joint stock company following the government’s direction, so that PV Power can raise capital from domestic and foreign investors to build financial capacity, renovate technology and management, improve efficiency and competitiveness, and ensure interests of the state, the corporation, investors and employees. PVN is providing guidelines for PV Power to implement equitization according to state regulations.

Achievements

PV Power leadership has taken the initiative in equitization plan preparation and realization, while the corporation has obtained positive achievements in this regard. PV Power worked with consultancy units to have the corporation evaluated and prepare equitization plans, including initial public offering (IPO) plans and plans for holding the first shareholders meeting. The corporation submitted to PVN and the Steering Committee for Equitization the corporation’s evaluation profile while having the corporation’s auditing done. The corporation’s evaluation profile has been submitted to the Ministry of Industry and Trade for approval.

PV Power is preparing to make public the corporation value as soon as it is clarified and approved, and to implement IPO according law.

The corporation has had meetings with investors to learn about their demands and introduce them to the corporation.

Proactively seeking strategic shareholders

PV Power leadership said seeking strategic shareholders is crucial for successful equitization, so PV Power has met domestic and foreign corporations and companies, including financial institutions such as Vinacapital, BNP Paribas, and Standard Chartered Bank.

PV Power has also coordinated with JP Morgan to hold a conference, attracting major US funds such as Artisan Partners Maria Negrete-Gruson, Cartica Capital, Franklin Advisors, Franklin Templeton, Invesco Global, Jennison Associates, LLC, and Morgan Stanley, and partners from the Greenwoods Asset Management Hong Kong Limited from Hong Kong (China) to introduce opportunities to become strategic shareholders of PV Power.

PV Power worked with Deloitte, which represents the Management Authority of Japan (METI), according to the Japanese government’s support program for energy development in Vietnam, regarding equitization, seeking strategic shareholders PV Power’s new projects.