Vietnam power utility begins pullout from non-core sectors

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Electricity of VNietnam sold 25.2 million shares of ABBank as it began divesting from non-core areas

Electricity of Vietnam has sold 25.2 million shares of ABBank to the Hanoi General Export Import Joint Stock Company at VND10,000 per share.

In an announcement Friday, EVN, which now has 76 million shares or 16.02 percent stake in the bank, said it is a move to divest from non-core businesses and restructure by 2015, a plan approved by the government, news website VnEconomy reported.

EVN plans to sell all its shares in An Binh Commercial Joint Stock Bank, its formal name, and all real estate, insurance, and securities firms besides some other banks and focus on its main business, which is producing and trading electricity.

Its total investment in non-core businesses is now worth around VND1.1 trillion ($52.1 million).

Its chairman, Dao Van Hung, was fired in February last year after the company reported losses of VND11.5 trillion ($552 million) in the previous two years.

The government has ordered all state companies to divest from non-core businesses to stabilize the economy after years of investing in the stock and real estate markets and mostly losing but stoking inflation.

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