To acquire 100 percent of shares of the Airports Corporation of Vietnam (ACV), the state will have to buy more than 100 million shares at the price of VND79,000 per share.
The Ministry of Transport (MOT) has proposed that the government buy shares held by non-state shareholders to turn ACV into a state-owned enterprise (SOE).
The ministry said ACV needs to be a wholly SOE to ensure the highest level of national defence security for aviation activities.
It is estimated that 2.17 billion shares are in circulation, of which the state is holding 95.4 percent, or 2.07 billion. As such, to acquire 100 percent of shares, the state will have to buy 100 million shares now in the hands of non-state shareholders. With the price of VND79,000 per share, the amount of money the state will have to pay is VND8 trillion.
|To acquire 100 percent of shares, the state will have to buy 100 million shares now in the hands of non-state shareholders. With the price of VND79,000 per share, the amount of money the state will have to pay is VND8 trillion.|
Since the day it was equitized in April 2016, ACV has gained better business results in both revenue and profit. In 2018, the enterprise made a profit of VND6.148 trillion. In the first half of 2019, it got revenue of VND8.909 trillion, an increase of 12 percent, and the profit of VND3.703 trillion, up by 20 percent compared with the same period last year.
MOT’s plan has raised a question about the company’s plan to list shares on the bourse (its shares are being traded on UpCom) and the state’s plan to divest shares.
In a report released in June 2019, Ban Viet Securities quoted a source from ACV as saying that the State is likely to maintain its ownership over the runways at the airports and authorized ACV to manage the runways.
However, there is still no detailed assessments on the financial impacts on ACV. Ban Viet Securities thinks that ACV can collect some kinds of takeoff/landing management fees.
ACV doesn’t expect the maintenance of runways at Tan Son Nhat and Noi Bai Airports to be implemented in 2019, as the decisions related to runway ownership and the responsibility of funding maintenance are still pending.
Nhip Cau Dau Tu quoted a source from MOT as reporting that the State won’t buy ACV back prior to 2025.
Le Cong Nhuong, a National Assembly’s Deputy, said it is necessary to reconsider the plan to buy ACV to turn ACV into a wholly SOE.
He doesn’t agree with MOT that it is necessary to buy ACV for national defence and security purpose.
Nhuong said the State is holding 95.4 percent of shares, while private investors have only 4.6 percent, a small proportion which doesn’t allow the shareholders to make decisions related to ACV’s operation.
He also questioned the huge amount of money to buy back ACV’s shares would be arranged.
Prime Minister Nguyen Xuan Phuc has signed a decision approving a list of 93 State-owned enterprises which will be equitised from now to the end of 2020.
Following a muted 2018 and first half of 2019, experts are pining for a new surge in state divestments and equitisations, buoyed by new regulatory frameworks.