Sovico increased shareholdings in VietJet Air
Sovico Holdings, 52% owned by VietJet Air CEO Nguyen Thi Phuong Thao, has completed the purchase of additional 13.67 million shares of VietJet Air.
Consequently, Sovico has lifted its shareholding in the budget airline to 34.25 million shares, equivalent to 7.59% of charter capital and becoming a major shareholder, informed the Ho Chi Minh Stock Exchange (HoSE).
Sovico increased shareholdings in VietJet Air.
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Under this price, Sovico is expected to part away with VND3 trillion (US$132.3 million) to complete the deal.
By the end of 2017, Sunflower Sunny Investment Company Limited, wholly-owned by Thao, currently is the largest shareholder of VietJet Air with 129 million shares, equivalent to a 28.57% stake. HD Bank, of which Thao is the permanent vice-chairman, also owns a 5% stake in the carrier, or 22 million shares.
Thao, currently the Board Chairman of Sovico, currently owns and be the representative of 189 million shares at Vietjet Air, equivalent to 42% of charter capital, stated in the firm's 2017 governance report.
As a result, after Sovico completing the transaction, Thao and her related companies have increased shareholdings in VietJet Air to nearly 50%.
HoSE on March 29 informed the Singapore`s sovereign wealth fund Government of Singapore Investment Corporation (GIC) has reduced its ownership in VietJet Air to 4.97% and is no longer a major shareholder of the carrier.
The low-cost carrier's total net revenue in 2017 stood at nearly VND42.258 trillion (US$1.8 billion), a year-on-year increase of 53.7%. Its pre-tax profit was approximately VND4.755 billion (US$211.3 million), up 75.9% year on year.
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 $34.6 billion in 2027 from the $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.
- Growing number of FDI firms moving to Vietnam
- Vietnam Gov’t committed to facilitating Adani Group’s US$2-billion port project
- Vietnam Railway proposes US$87 million for Hanoi–Dong Dang railway upgrade
- Vietnam’s North-South high-speed railway to be designed for 350km/h
- Vietnamese gov’t urged to address impact of global minimum tax
- Samsung plans drastic investment increase in Vietnam over next three years