Ministry to auction Vietnam Airlines’ share (HVN) purchase rights
Ministry to auction Vietnam Airlines’ share (HVN) purchase rights
The Ministry of Transport will auction 371.5 million share purchase rights, equivalent to 57.9 million additional shares, in Vietnam Airlines’ upcoming share issuance.
Individuals and organisations, including overseas Vietnamese and foreigners who meet the conditions as prescribed by the law, will be eligible to buy the rights.
The starting price for each Vietnam Airlines stock is VND6,026. The ministry is estimated to collect a minimum of VND2.23 trillion from the deal. The auction is expected to be held at Hanoi Stock Exchange.
Vietnam Airlines also announced the issuance of shares to the public with a registered 191,191,377 shares for existing shareholders, at VND10,000 per share. The last date for registration is April 20.
The amount of capital to be mobilised from the deal will be used to supplement the charter capital to invest in a project to purchase aircraft and to increase working capital.
The purchase rights can only be transferred once. The deadline for transferring the rights to buy stakes is from May 7, 2018, to June 20, 2018. The registration for buying and payment of shares is open from May 7, 2018, to July 1, 2018.
In January 2017, Vietnam Airlines started listing and trading on UPCoM with the stock code HVN.
The firm recently signed a joint venture agreement with Air France to expand to the European market and pursue a dual-brand strategy with its subsidiary budget carrier, Jetstar Pacific Airlines, to increase its competitiveness in the domestic market.
Duong Tri Thanh, General Director of Vietnam Airlines, said the firm had been directed to reduce State ownership to 51 per cent by 2020.
“At present, the State owns 86.2 per cent of shares of Vietnam Airlines. We are carrying out procedures for the State to offer the rights to purchase 57.8 million shares to existing shareholders, reducing to some 82.1 per cent. It’s expected to take place in December this year or in the first quarter of 2018. After that, Vietnam Airlines will move to list shares on HCM Stock Exchange,” said Thanh.
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