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Vietnam : VIETNAM Airlines puts forward privatization plan

June 24, 2014

State-owned Vietnam Airlines intends to sell 25 percent of its share capital this year, as per to the privatization plan it newly submitted to the Ministry of Transport.

As per to the plan, the company expects to raise 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 early offering, the company may select to increase its capital by selling off further shares.

Vietnam Airlines intends to hold its original public offering (IPO) within 3 months of the plan's sanction by the central government.

The Ho Chi Minh City Stock Exchange and BIDV Securities Company (BSC) will assist as consultants on its execution. The carrier intends to keep its present staff of 10,180 people.

The company in addition planned 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 in search of revenues of above VND110 trillion, with a profit about VND15.5 trillion.

It intends to acquire four new planes in 2015, together with Airbus 350 and Boeing 787. At present, the company has above 80 planes, including Boeing 777, Airbus 321, Fokker and ATR72.

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Source: TendersInfo (India)

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