MoT to transfer right to buy 57.9m shares in Vietnam Airlines
The Ministry of Transport (MoT) has announced to transfer the right to buy 57.9 millions of its shares in flag carrier Vietnam Airlines (HVN) in the auction which will be held on Hanoi Stock Exchange.
Following the plan, the MoT, which represents the State's stake, will auction 371.5 million share purchase rights, equivalent to 57.9 million additional shares, in Vietnam Airlines' upcoming share issue.
MoT to transfer right to buy 57.9m shares in Vietnam Airlines.
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The state-owned airline earlier announced plan to issue more than 191 million shares at VND10,000 (US$0.4) apiece to current shareholders with the aim of increasing its charter capital.
The proceeds will be used to invest in the company's Boeing 787 and Airbus 350 fleet and raise its floating capital. The issue, which was expected to be held in the last quarter of 2017, however, has yet to be implemented.
In January 2017, Vietnam Airlines started listing and trading on UPCoM with HVN stock code. The carrier is in the process of accelerating equitization with a target to pare the state ownership to 51% by 2020 from the current 86.16%.
"The State currently owns 86.16% stake of Vietnam Airlines and we are carrying out procedures to offer for sale 57.9 million shares to existing shareholders. The national carrier will also list its shares on the benchmark stock exchange in Ho Chi Minh City (HoSE) in the second quarter of this year," CEO of Vietnam Airlines Duong Tri Thanh told local media.
In 2017, Vietnam Airlines's total revenue stood at VND88.4 trillion (US$3.9 billion), with pre-tax profit at a record VND2.8 trillion (US$124.4 million), surpassing the annual plan by 72% and 8.3% higher than in 2016.
Vietnam currently has four airlines, including national carrier Vietnam Airlines, budget operator Jetstar Pacific Airlines (partly owned by Vietnam Airlines), budget carrier Vietjet Aviation, and Vietnam Air Services (VASCO).
In 2010-2016, the Vietnamese air transportation market has witnessed a high average growth rate of 14.9% in passenger volume and 10.7% in cargo, informed Vietnam Civil Aviation Administration.
During the first 9 months of 2017, Vietnamese airports have served more than 71.75 million passengers, up 17.9%, and handled 833,000 tons of cargo, up 34.6% compared to the corresponding period in 2016.
A recent World Tourism & Travel Council report showed the tourism industry's contribution to Vietnam's gross domestic product will increase by nearly 90% to US$34.6 billion in 2027 from the US$18.4 billion recorded last year.
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Vietnam news in brief - August 24
Read The Hanoi Times to stay up to date on developments in Vietnam.
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