Thac Ba Hydropower JSC

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On December 2005, the state-owned Electricity of Vietnam (EVN) sold over 15.38 million shares (24.2% of the equity) of Thac Ba Hydropower Joint Stock Company to over 300 minority investors for US$10.6 million (VND153.6 billion) at Hanoi Securities Trading. The initial price per share was set at US$0.68 (VND 10,800) which was also lowest buying price while the highest bid per share was US$0.81 (VND 12,900). Prior to the transaction, the company had a face value of US$0.63 (VND 10,000) per share. Thac Ba Hydropower Joint Stock Company was an independent power producer which operated a 108 MW hydro power plant in Yen Bai Province. The plant was operational since October 1971. Its total electricity production was sold to EVN and transmitted to the national power grid. Before the sale of shares, the company was a wholly owned subsidiary of EVN. The partial divestiture of Thac Ba Hydropower JSC was part of a new government regulation that required selling at least 20% stakes in electricity generation firms to minority shareholders. Between December 31 2008 and January 15 2009, EVN sold a 24.8% stake in the company to a sovereign investment fund. In March, 2009, EVN announced that it would sell a 21% stake in Thac Ba Hydropower Joint Stock Co (TBC) between March 10 and April 10, 2009, transfering 13.3 million shares of TBC to EVN Finance Company under the negotiation method. As a result, EVN reduced its current 51% stake in TBC to 30%. In October, 2009, EVN Finance cut its stake in Thac Ba Hydropower JSC from 17.5% to 7.5%, selling 6.35 million shares to Refrigeration Electrical Engineering JS Corp (REE). 2009: 35% = 25(24.8)% + 10% EVN owns 40% of EVN Finance (State-owned).