State ownership cut to 51% at Vietnam Airlines
State ownership cut to 51% at Vietnam Airlines
The Ministry of Transport plans to reduce the State ownership stake in Vietnam Airlines Corporation to 51 per cent of the charter capital in 2019.
The State currently holds 86.16 per cent of Vietnam Airlines’ charter capital, worth nearly VND12.3 trillion after equitisation.
The ministry has required the representative of State capital at Vietnam Airlines to create concrete methods to reduce the State’s ownership stake based on the corporation’s business and production plans, development investment and the stock market situation, especially given the demand for liquid capital in the coming period.
The chosen methods will have to detail the implementation process and provide an overall evaluation of benefits to the State and the corporation.
In November 2017, the representative of the State capital at Vietnam Airlines submitted to the ministry a roadmap for State divestment of capital in the period 2017-20, where some 430 million shares of the State will be divested to reach a 51 per cent stake.
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.
Under the roadmap, Vietnam Airlines will complete the increase in charter capital by issuing an additional 191.191 million shares to existing shareholders and transfer the right to purchase 57.9 million shares, all of which was approved by the Government in May 2017.
