Vietnam Airlines proposes privatization plan

By Mai Ha, Thanh Nien News

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Vietnam Airlines has proposed a detailed privatization to the government. Photo: Ngoc Thang Vietnam Airlines has proposed a detailed privatization to the government. Photo: Ngoc Thang

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State-owned Vietnam Airlines plans to sell 25 percent of its share capital this year, according to the privatization plan it recently submitted to the Ministry of Transport.
According to the plan, the company hopes to increase its capital to VND14.1 trillion (US$662 million) through the sale.
In the course of the sale, 282 million shares will be offered to strategic investors, 48.8 million will be auctioned to the public and the rest sold to its employees.
Each share, valued at VND10,000, will be auctioned at stating price of VND22.300.
The plan states that, depending on the profits reaped in the initial offering, the company may choose to increase its capital by selling off further shares.
Vietnam Airlines plans to hold its initial public offering (IPO) within three months of the plan's approval by the central government.
The Ho Chi Minh City Stock Exchange and BIDV Securities Company (BSC) will serve as consultants on its execution.
The carrier plans to retain its current staff of 10,180 people.
The company also proposed that the government maintain current policies, including securing their purchases of planes and engines, and not requiring the firm to mortgage assets to secure loans for Airbus 350 and Boeing 787 aircrafts.
Vietnam Airlines is seeking revenues of more than VND110 trillion, with a profit about VND15.5 trillion.
It plans to buy four new planes in 2015, including Airbus 350 and Boeing 787. Currently, the company has more than 80 planes, including Boeing 777, Airbus 321, Fokker and ATR72.

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