Vietnam Airlines sold its 49 per cent stake in Cambodia's Angkor Air to private investors.
Vietnam Airlines has sold its shares in Angkor Air, Sin Chansereyvutha, a spokesman for Cambodia’s State Secretariat of Civil Aviation, confirmed to DealStreetAsia, though the deal size has not been disclosed.
In 2009, Vietnam Airlines purchased 49 per cent of Angkor Air’s stakes, showing its interest in the Cambodian aviation market. The remainder was held by the local government.
Vietnam Airlines has made an exit from Cambodia's Angkor Air
“The company’s operation has been adversely impacted by the unpredictable development of the pandemic. The management has come up with short- and long-term solutions to cope with the uncertainties,” Vietnam Airlines said in its 2019 financial statement.
Last October, Vietnam Airlines signalled that it was mulling over withdrawing or slashing its stake in Angkor Air due to intense competition in the sector. Earlier this month, the firm was also reported to be preparing the groundwork to divest 49 per cent stake in Cambodia’s Angkor Air.
In addition, escalating market turbulence caused by COVID-19 pandemic has rubbed salt into the wound of this Vietnam’s state-owned air carrier.
Vietnam Airlines is allegedly the hardest hit firm in the first quarter of 2020 with consolidated revenue falling by VND6.7 trillion ($291.3 million) from the same period last year to VND19.2 trillion ($834.78 million), thus hitting a loss of VND2.38 trillion ($103.48 million), according to the Commission for the Management of State Capital at Enterprises.
Its stock tumbled by approximately 50 per cent due to various draconian measures to contain the virus.
However, the Vietnamese government has just put an end to the lockdown campaign since April 23, since the country has gone nine straight days without detecting a new case.
Experts believe that Vietnam Airlines stocks (HSX: HVN) would rally from this situation when the travel ban within the country has been lifted. VIR
If enterprises are treated unequally, Vietnam will suffer immeasurable consequences, said lzwyer Truong Thanh Duc from Basico Law Firm.
Vietnam Airlines is among 51 stocks that had been barred from margin lending in the second quarter, according to the Ho Chi Minh Stock Exchange (HoSE).