VietNamNet Bridge – On September 10 Prime Minister Nguyen Tan Dung approved the equitization plan of the national air carrier Vietnam Airlines, with over VND14 trillion of charter capital, equivalent to more than 1.41 billion shares with a par value of VND10,000  share.

Vietnam Airlines will sell about 331 million shares through IPO.

Vietnam Airlines will sell 20 percent of shares to its strategic investors during the initial public offering (IP). Up to 75 percent of its shares will be held by the State, 3.465% will be auctioned and the remaining will be sold at soft prices to its staff and trade union.

Vietnam Airlines is allowed to borrow loans with government guarantee to develop its fleet.

The Prime Minister authorized the Minister of Transport to decide the starting price for Vietnam Airlines shares in the IPO; to decide the criteria and select the strategic investors; and to choose an appropriate time to reduce the state capital to 65%.

The plan approved by the Prime Minister is not much different than the proposals by the Ministry of Transport that was submitted to the Government in mid-June 2014.

By 31/12/2013, the book value of Vietnam Airlines was over VND57.1 trillion, of which the actual value of state capital was over VND10.5 trillion.

Concerning the company's fleet, including its owned and leased aircraft, the Financial Service and Valuation Joint Stock Company, said that the assets are valued of approximately VND53 trillion (at full price) and VND37.6 trillion (remaining value) at the time of 31/3/2013.

In addition to the fleet, Vietnam Airlines also owns the infrastructure systems serving aircraft and the ground service facilities on 301,902 m2, of which 90% are located in Hanoi and HCM City.

Despite the recession of the global aviation market, Vietnam Airlines is the only airline in Vietnam reported profit in the fiscal year of 2013. Its revenue and other income in 2013 reached VND54,017 billion, profit of VND157 billion and ROE (return on equity) reached 1.7%.

$1 = VND21,000

Na Son