Russia's Novolipetsk Steel, Evraz eye 29% stake in Vietnam Steel
MOSCOW. Nov 21 (Interfax) - Russian steelmakers Evraz plc and Novolipetsk Steel are interested in buying a stake in Vietnam Steel Corporation, Vietnam's Investment and Trade Center said in a statement on its website, citing news agency VNS.
Vietnam Steel is planning a restructuring and intends to sell a 5.76% stake in the state company to the market and a 29% stake to a foreign investor.
Vietnam Steel's chief executive, Le Phu Hung was reported as saying in the statement that the company would only select a strategic partner in the fourth quarter of next year, but has already received statements of interest from Evraz plc and Novolipetsk Steel.
He said 29% is the maximum stake that can be sold to a foreign investor under the country's legislation.
In May of this year, Hung said his company was more interested in a partnership with Japanese companies due to a similarity in mind set. Vietnam Steel was supposed to hold negotiations in October with leading Japanese steelmakers Nipon Steel, JSE, Tokyo Steel, Kobe Steel, Mitsubishi and Marubeni-Itochu.
The company had planned to hold an IPO in the summer of 2011, but is now talking about the fourth quarter of 2012.
Vietnam Steel has plans to invest $1.8 billion in 16 steel projects.