In its latest announcement on November 27, Thep Viet Nam proposed to publicly auction 65% of its ownership in VICASA at a minimum price of VND 24,158 per share. This transaction, which was initiated in November this year, is expected to be completed by the first quarter of next year, according to the attached report from Thep Viet Nam.
This move aligns with the restructuring plan of the State-owned Steel Corporation, causing a stir in the stock prices of both involved companies. On November 28, VCA shares surged to the ceiling price of VND 9,090 per share, while TVN shares increased by 2.8% to VND 7,300 per share.
 VICASA Headquarters at No. 9, Bien Hoa 1 Industrial Park, An Binh Ward, Bien Hoa City, Dong Nai Province
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According to the signed consulting contracts, the responsibility of determining the value of Thep Viet Nam’s capital in VICASA was assigned to Vietnam Audit and Valuation Company Limited (VAE), while the task of formulating the transfer plan and executing the sale of investment capital was entrusted to VietinBank Securities Company (HOSE: CTS).
The Board of Directors’ resolution, published on November 27, stated that the two consulting units had fulfilled their assigned roles.
The actual value of Thep Viet Nam’s ownership in VICASA was determined to be nearly VND 238.5 billion, corresponding to VND 24,158 per share. This calculated value by the consulting unit is nearly double the book value and more than 2.5 times the market price of VCA on the stock exchange.
As a result, VCA shares hit the ceiling price on November 28, following the disclosure of the divestment information. However, the matched volume was modest at 15,400 shares, amounting to only VND 139 million, according to VietstockFinance data.
The thin liquidity of this stock can be attributed to the company’s small scale and the concentrated ownership structure, with one major shareholder holding dominant control. These factors also make it challenging for Thep Viet Nam, as the seller, to opt for distributing VICASA shares through direct matching transactions on the HOSE floor.
Moreover, the context of the stock market’s apparent lack of enthusiasm for steel stocks this year adds to the complexity. This indifference stems from the sluggish recovery of the domestic real estate sector, coupled with risks associated with China’s steel oversupply and mounting global trade protectionism pressures.
“It can be seen that the transfer of capital through public auction in lots has significant advantages,” stated Thep Viet Nam in its report on October 24.
As proposed by the consulting unit, the parent company will publicly auction a single lot of 65% of VICASA shares to interested domestic investors.
In the event that the auction is unsuccessful, they will proceed with competitive offering or agreement-based methods, depending on the situation.
Currently, in addition to Thep Viet Nam as the parent company, VICASA has another major shareholder, Danang Steel Joint Stock Company, holding 7.14% of the shares.
