PETROVIETNAM OIL IN STAKE SALE TALKS

Firm expects to raise at least US$270m from 40pc share disposal

PETROVIETNAM Oil Corp (PV Oil), Vietnam’s sole crude exporter, said it’s in talks to sell as much as 40 per cent to strategic investors and expects to narrow down to a list of about five potential bidders for the government this month.

PV Oil expected to raise at least US$270 million (RM1.2 billion) from one or two investors from the stake sale, said president and chief executive officer Cao Hoai Duong at the company’s headquarters, here.

About 10 potential strategic investors, including “major oil companies” from Japan, South Korea, Thailand, Vietnam and the Middle East, had applied to buy the shares, he said.

PV Oil would also offer as much as 15 per cent of its shares in an initial public offering (IPO) in the first half, he said, adding that the stake sale to strategic investors would occur simultaneously with or after the IPO.

The company would list shares at an undetermined time on the Ho Chi Minh City Stock Exchange after the IPO, he said.

“We are looking for good strategic partners, so we can make another mergers and acquisition success,” said Duong on Tuesday, referring to past acquisitions to expand its retail network.

The sale of shares would inject private investment in the statecontrolled petroleum industry and accelerate government plans to open up the oil and gas sector, a market that’s worth US$5.9 billion, according to My Truong, Hanoi-based research manager at Ho Chi Minh City Securities Corp.

“PV Oil’s IPO is considered the most attractive one this year,” said My. “Almost all financial investors, both institutions and individuals, are looking forward to have a piece of the cake.”

PV Oil, which is the country’s second-largest petroleum retailer, is also seeking to expand its market share of 22 per cent, trailing behind larger competitor Vietnam National Petroleum Corp, which has about half, according to Saigon Securities Inc estimates.