Vietjet co-founder, Shell among those vying for PV Oil strategic stake

Vietjet CEO Nguyen Thi Phuong Thao
Vietjet president & CEO Nguyen Thi Phuong Thao (right) is seen here with colleagues. Photo: Sovico Holdings website

Sovico Holdings, which is 52 per cent owned by Vietjet Air CEO Nguyen Thi Phuong Thao, is among eight investors that have expressed interest in buying a strategic stake in IPO-bound Vietnam Oil Corporation (PV Oil).

PV Oil CEO Cao Hoai Duong told local media on the sidelines of a roadshow on January 12 that six foreign and two domestic investors have expressed interest in becoming the firm’s strategic shareholders. These are Shell, Idemitsu, Puma, Kuwait Petroleum International, PTT, SK, Sacom Investment Fund and Sovico.

A senior Sovico Holdings representative confirmed to DEALSTREETASIA that the firm has submitted its registration documents to participate in PV Oil’s strategic stake sale. Investors seeking a strategic stake are required to retain their holding for at least 10 years.

PV Oil, a PetroVietnam subsidiary, plans to offer 20 per cent of its shares in the IPO on January 25 on the Ho Chi Minh City Stock Exchange. At a starting price of VND13,400 (nearly $0.59) per share, the share sale is expected to fetch the company about $121.97 million. In addition, its employees are entitled to preferential 1.8 million shares, representing 0.18 per cent of charter capital.

PV Oil will also offer an additional 44.72 per cent stake to strategic investors through a private placement. The IPO and strategic stake sale will reduce the government’s ownership in PV Oil to 35.1 per cent.

Some investment experts believe Sovico plans to target the aviation fuel sector by investing in PV Oil. The market is currently dominated by two suppliers — Petrolimex PA and Vietnam Air Petro Company Limited (Skypec) of Vietnam Airlines.

Sovico Holdings, co-founded by billionaire Thao, has a charter capital of VND3 trillion ($132 million). It holds stakes in Vietjet Air, HDBank, Phu Long Real Estate Company, An Lam Ninh Van Bay Resort in Nha Trang, Evason Ana Mandara Resort in Nha Trang, Furama Resort Danang and Furama Villas Danang.

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