Pha Lai Thermal Electricity Power JSC

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On November 25, 2005, the state-owned Electricity of Vietnam (EVN) sold over 62.3 million shares (22% of the equity) of Pha Lai Thermoelectricity Power JSC to 304 investors for more than US$40.2 million (VND635.6 billion) at Hanoi Securities Trading. The highest share price was US$0.95 (VND 15,000) per share while the lowest bid was $0.64 (VND 10,200). Pha Lai Thermal Power Company (PPC) was an independent power producer which operated two coal power plants with a total installed capacity of 1,040MW. The first thermal plant, Pha Lai I, became operational in 1983. The second plant, Pha Lai II, became operational in 2002. The company was the third biggest electricity company in Vietnam, supplying one-fourth of the power output in northern Vietnam and one-tenth nationally. Its total electricity production was sold to EVN and transmitted to the national power grid. Before the sale of shares, Pha Lai Thermal Power Company (PPC) was a wholly owned subsidiary of EVN with headquarters in Hai Duong Province. On April 2, 2007 the state-owned Electricity of Vietnam (EVN) sold another packaged of shares in PPC (41.7 million shares) to the public for US$180 million (VND2.9 trillion) at the Ho Chi Minh City Securities Trading Center. As a result of the auction, EVN further reduced its ownership in PPC from 78.4% to 51%. More than 1,460 investors purchased the stock at an average price of US$4.3 (VND 69,710). The partial divestiture of Pha Lai Thermoelectricity Power JSC was part of a new government regulation that required selling at least 20% stakes in electricity generation firms to minority shareholders. From September 15 to October 23 in 2009, EVN sold 2.771 million shares, equal to 0.85% stake in PPC. As a result EVN reduced its stake in PPC from current 66.29% to 65.44%. 1%=0.85%