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Vietnam Airlines to reduce State funding to 51%

2017.12.27 09:50:22 | 2017.12.27 09:50:43
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A technician is maintaining an aircraft at the Nội Bài International Airport.

A technician is maintaining an aircraft at the Nội Bài International Airport.

Vietnam Airlines plans to reduce State ownership to 51 per cent of the charter capital in the next three years.

This is part of the report on the results of restructuring Vietnam Airlines in the 2013-16 period and the plan from 2017 to 2020, which has just been sent to relevant bodies for approval. About 430 million shares of the State will be divested to a tough 51 per cent.

The roadmap to reduce State ownership in the company is divided into two stages.

Specifically, in the 2017-18 period, Vietnam Airlines will complete the increase of charter capital by issuing an additional 191.191 million shares to existing shareholders and transfer the right to purchase 57.9 million shares, which has been approved by the Government in May 2017.

In case Vietnam Airlines successfully sells all the shares and selects investors to buy the above-mentioned 57.9 million shares (expected before the first quarter of 2018), the firm will achieve its double targets including increase of the charter capital to VNĐ14 trillion and Vietnam Airlines’ owner’s equity to VNĐ16 trillion. At the same time, State ownership will decrease by 4.1 per cent to 82.1 per cent of the charter capital.

In the period 2018-19, Vietnam Airlines will continue offering shares worth about 10-20 per cent of the charter capital. By this time, State ownership will decrease to 60-65 per cent of the charter capital.

If the roadmap is successful, the ratio of State-owned capital in Vietnam Airlines will be only about 51 per cent, in line with Decision No.1232/2017/QĐ-TTG approving the list of State-owned enterprises marked for divestment during 2017-20, signed by Deputy Prime Minister Vương Đình Huệ on behalf of the prime minister, dated August 17, 2017.

According to General-Director of Vietnam Airlines, Dương Trí Thành, after the capital increase is completed in the first phase, the firm will move its listing, code HVN, from Hà Nội Stock Exchange (HNX) to HCM Stock Exchange (HOSE) in the second quarter of 2018. The listing on HOSE is expected to help improve the liquidity of HVN shares, while enhancing the position and image of Vietnam Airlines, creating favourable momentum for its capital increases and divestments in the future.

Vietnam Airlines has a charter capital of nearly VNĐ12.28 trillion, of which the State holds 1.057 billion shares, equivalent to 86 per cent of the charter capital. Of the remaining shareholders, ANA Holdings Inc, Japan’s largest aviation group, holds 107 million shares, representing nearly 8.8 per cent of the charter capital.

The methods to increase charter capital to reduce the rate of State ownership are being considered by representatives of State-owned capital at Vietnam Airlines.

By Viet Nam News (Published: 26/12/2017)

http://vietnamnews.vn/economy/420100/vietnam-airlines-to-reduce-state-funding-to-51.html#iDskVUeYmWwrkWSq.97

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]

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