Imex Pan Pacific Co. Ltd (IPP) has expressed interest in a 5% stake acquisition at Airports Corporation of Vietnam (ACV) to become a strategic shareholder.

IPP, which is active in various business areas, is the second local business to show the intention to join ACV as a strategic investor.

In its document sent to the steering committee for equitization of ACV and the Ministry of Transport, IPP said it meets the criteria set by the ministry for a strategic shareholder of the corporation, according to the local news site VnExpress.

“We want to cooperate with ACV and hold 5% of its chartered capital,” the document said. 

Under the ministry’s criteria released last month, an organization or enterprise active in the aviation sector must operate at least ten airports, generate minimum annual revenue of US$1.5 billion and have equity of no less than US$2 billion last year if it wants to be a strategic shareholder of ACV.

In addition, its 2014 financial reports had no accumulated losses and profit accounted for at least 10% of revenue.

Meanwhile, the equity of a financial institution should be at least US$5 billion as of the end of last year and cleared of any accumulated losses last year besides 2014 profit making up at least 5% of revenue.

For investors that are not active in any of the two said sectors, it should join a consortium of at least three enterprises in different sectors and one of them must operate more than five airports and posted 2014 revenue of US$1 billion or higher, and equity of at least US$2 billion by late last year.

In the document sent to the ministry, IPP said it operates in the trading sector and has chartered capital of VND2.5 trillion (around US$110 million). Its chairman has 20 years of experience in aviation.

Besides, IPP provides non-aviation services at airports in Manila, Hanoi, HCMC, Phu Quoc, Danang and Khanh Hoa, and the strategic partner of airport duty-free store operators at international airports.

IPP said if it is picked as the strategic partner of ACV, it will support operations of airports in Vietnam in the long term in terms of technology transfer, personnel training, market expansion and sales.

IPP wrote to the ministry months ago seeking support to operate Phu Quoc International Airport off mainland Kien Giang Province. Last Year, the firm spent around VND310 billion acquiring 23.6% of shares at Tan Son Nhat Airport Service Company (SASCO), a subsidiary of ACV.

Earlier, France’s Aeroports de Paris (ADP) and the Bank for Investment and Development of Vietnam (BIDV) unveiled their plans to purchase a 20% stake (all the shares on offer) and a 5% stake respectively.

The equity requirement set by the ministry is deemed hard for local financial institutions to meet.

BIDV chairman Tran Bac Ha was quoted by VnExpress as saying that the condition would make it impossible for local financial institutions to become a strategic shareholder of ACV. The reason is that the equity of VietinBank and BIDV, the two local banks with the highest equity, is only US$2.55 billion and US$1.85 billion respectively.

After the ministry released the criteria, BIDV bemoaned they were too high to meet and propose adjustments in its document sent to the Prime Minister.

However, a source from the steering committee for equitization said BIDV should partner with other investors to form a consortium to buy shares at ACV if the bank wants to be one of the strategic investors.