Vietnam Airlines to divest non-core firms

Live Quote: On

RSS

My Page | Contact Us

RSS

RSS

Company A-Z | Stock Screener | My Portfolios | Streaming Quotes | Technical Analysis

Investing Tools

Useful Links

Monday, April 29, 2024 4:38:06 PM - Markets open

VN-INDEX

1,209.52

+4.55/+0.38%

HNX-INDEX

226.82

-0.75/-0.33%

UPCOM-INDEX

88.76

+0.43/+0.49%

Vietnam Airlines to divest non-core firms

Vietnam News - 7/25/2015 8:30:32 AM

(0 ratings. You must sign in to rate.)

Print |

Add To Favorites |

Email |

RSS

Vietnam Airlines is speeding up divestment of non-core businesses.

Dau tu (Viet Nam Investment Review) newspaper reported that the carrier's divested amount totalled VND505.64 billion (US$23.19 million) in terms of face value of shares, accounting for about 85 per cent of all values intended for withdrawal.

On July 7 alone, the company sold its entire stake worth VND100 billion ($4.59 million) in the Viet Nam Aviation Insurance JSC in an auction for VND109.55 billion ($5.03 million).

The firm has basically pulled out of "sensitive" sectors such as banking and finance and property, selling its stakes in Techcombank, Hoa Binh Securities, Bao Minh Insurance and Vietnam Airlines Investment.

Phan Xuan Duc, deputy general director of the carrier, said it would sell its stakes in businesses involved in printing, postal services, transportation, construction and plastic production this year.

Of these firms, Airport Engineering Consultancy and Services last year paid a dividend of 16 per cent while Aviation Printing paid 13.58 per cent and Aviation High Grade Plastic, 12 per cent.

Their satisfactory business results would help sell them off on schedule, he said.

However, Vietnam Airlines faces difficulties selling the Aviation Hotel JSC, which has yet to build a planned four-star hotel in HCM City though it was established nearly 10 years ago.

The airline owns 44 per cent of the company's equity of VND96 billion ($4.40 million). Due to problems related to the progress of the project, it failed to divest from Aviation Hotel last year as instructed by the Ministry of Transport. Now the divestment must be completed this year.

According to Duc, after withdrawing from other areas, Vietnam Airlines will retain interests in 18 businesses that are mainly in aviation transportation.

But this may not be the final figure as the company is still continuing to review its investment portfolios.

"We will complete the task in Q3 2015," he said.

Vietnam Airlines has also urged its affiliates as well as companies in which it owns a majority stake to sell off inefficient businesses.

The Viet Nam Air Petrol Company Limited has been asked to sell its stakes in the Nha Be petroleum storage company and Jetstar Pacific Airlines in Thang Long Investment and the Jupiter logistics firm.

The Noi Bai Airport Services Company is also to withdraw from the taxi business.

Vietnam Airlines became an equitised company on April 1 this year.

Newer News
24/04	VN's economy forecast to grow by 5.5 per cent in 2024
24/04	EVN seeks PM's solutions for solving challenges in PPA negotiations
24/04	Standard Chartered revised down Việt Nam’s 2024 GDP growth forecast to 6%
24/04	Vietnamese PM outlines three key breakthroughs for ASEAN's path to digital excellence
19/04	VN's exports $25.77 billion to the US in Q1
17/04	Vietnamese airlines boost capacity amid holiday rush despite aircraft shortage
16/04	Private sector contributes 45% of GDP
12/04	Việt Nam’s growth projected at 6% in 2024 with policy adjustment: AMRO
12/04	Public investment projects: big push for construction materials sector
10/04	Việt Nam's exports to India maintain growth momentum

Older News
24/07	Concern about rich - poor gap increases in Vietnam: survey
24/07	SOEs restructuring, taxation reform on the table
24/07	Naughty list: Vietnam names 600 top tax defaulters, threatens to freeze bank accounts
24/07	Survey finds Vietnamese support move to full-on market economy
24/07	Vinalines makes dent in its debt load
24/07	Consumer confidence eases off record high
23/07	Vietnam, Investors Talk Big On Gaming Resorts, But Small Casinos Are Winners
23/07	Finance Ministry gears up to collect tax arrears
23/07	Petrol-pricing scheme unintelligible, experts say
23/07	Import-export revenue hits US$171.67 billion

Newsletter Signup