PetroVietnam Fertilizer may manage, not buy, Ca Mau plant

PetroVietnam Fertilizer and Chemical may manage the Ca Mau Fertilizer Plant under a lease contract after shareholders rejected an acquisition plan.

Dinh La Thang, chairman of PetroVietnam, the former’s parent, told the media earlier this month that his group expected PetroVietnam Fertilizer and Chemical Co. to manage many fertilizer and gas plants when setting it up, and not just the Phu My Fertilizer Plant it manages now. But late last month, many shareholders voted against buying the US$990 million Ca Mau Fertilizer Plant, complaining they knew too little about it since they had only two pages of information to go by. Some others were also worried that the purchase would take the value of PetroVietnam Fertilizer and Chemical’s assets above VND20 trillion ($1.13 billion), more than four times its market capitalization of VN4.9 trillion. PetroVietnam, which has a 63 percent stake in PetroVietnam Fertilizer and Chemical, was not allowed to vote since it also owns Ca Mau. Source: DTCK