The plan did exclude the option of merging the two companies, the Vietnam National Oil and Gas Group (PetroVietnam) said.

The divestment is part of PetroVietnam’s overhaul plan for 2017-25.

The Ministry of Finance had previously asked the group to adjust its holdings in the two companies to 36% by 2020.

Under the ministry’s guidance, PetroVietnam had completed a divestment draft, cutting its ownership in the two firms to 36% during 2018-20. To ensure efficient divestment, PetroVietnam was looking at all options, including consolidating the two companies, it said.

Under a direction issued by the Prime Minister on August 11, 2017, PetroVietnam will reduce its ownership in Ca Mau Fertiliser from 75.56% to 51% and in Fertiliser & Chemicals from 61.38% to 51% this year.

At the 2018 annual shareholders’ meetings of the two companies, PetroVietnam said it would complete the divestment schemes by year-end.

At Ca Mau Fertiliser, the group has set up a steering committee and signed contracts with consultancy firms to construct a pricing and timetable for the divestment.

On the stock market, DCM is trading at around VND11,000 (US$0.5) per share, equivalent to the market value of more than VND5.82 trillion (US$253.2 million). In the first six months of this year, the company achieved revenue of VND3.24 trillion, up 7% year-on-year, but its net profit decreased 27% to VND413 billion.

DPM is trading at around VND18,000 per share on the Ho Chi Minh Stock Exchange, valuing the company at nearly VND6.97 trillion (US$303 million). The company reported revenue of VND4.8 trillion in the first half, up 10%, while its net profit reached VND402 billion, down 13% from the same period last year.