The national flag carrier Vietnam Airlines is
planning to make its initial public offering (IPO) by the end next year, under
a restructuring plan submitted to the Ministry of Transport earlier this week.
Under
the plan for partial equitisation, about 70 to 80 per cent of shares in the
airline will continue to be held by the State.
Vietnam
Airlines chairman Pham Viet Thanh said that his corporation expected to raise
at least $200 million from the IPO, a target that will be fulfilled only if
some of the shares are acquired by foreign investors.
In 2015
and 2017, the airline expected to issue additional shares worth $450 million to
raise capital to buy nine Airbus A350 and four Boeing B787-9 aircraft for its
fleet.
During
the re-organisation, the airline will hold 100 per cent of its Vietnam Airlines
Engineering Ltd and Vietnam Air Petrol Ltdsubsidiaries under a limited
liability company model. The airline will also maintain its major shareholder
status in nine service companies while keeping its existing investments in 11
suppliers.
It will
otherwise divest from non-core business such as insurance, securities, banking,
and real estate by 2015 with an expected capital, retrieving capital totalling
an estimated VND530 billion ($25.3 million).
Under
the final restructuring, Vietnam Airlines will consist of the parent company,
15 affiliates and 12 associated companies, compared to the current 18 and 14,
respectively.
The
carrier expects the restructuring to help improve its business performance
during the 2012-20 period, with earnings to total $43.5 billion and profits to
reach US$1.08 billion during the next eight years. The airline will also target
to become the third largest airline in Southeast Asia by the end of the decade.
Vietnam
Airlines had been included in a Government list of State-owned enterprises to
go public during 2007-10, but the plan failed to take off due to the financial
crisis and the declining stock market.
VNS
Business & Investment Opportunities
YourVietnamExpert is a division of Saigon Business Corporation Pte Ltd, Incorporated in Singapore since 1994. As Your Business Companion, we propose a range of services in Strategy, Investment and Management, focusing Healthcare and Life Science with expertise in ASEAN. We also propose Higher Education, as a bridge between educational structures and industries, by supporting international programmes. Many thanks for visiting www.yourvietnamexpert.com and/or contacting us at contact@yourvietnamexpert.com
No comments:
Post a Comment