Government-investment arm SCIC acquires 31% stake in Vietnam Airlines
The proceeds raised from this transaction would help Vietnam Airlines to maintain liquidity in the immediate future and mitigate impacts from the pandemic.
The proceeds raised from this transaction would help Vietnam Airlines to maintain liquidity in the immediate future and mitigate impacts from the pandemic.
In a market-based economy, all economic actors compete fairly with each other, while state-owned enterprises (SOEs) are independent and accountable for their own performance, Deputy Prime Minister Truong Hoa Binh has said.
In 2020, Vietnam Airlines operated 96,500 flights, down 48% year-on-year amid the Covid-19 crisis.
The State Bank of Vietnam would provide refinancing loans for Vietnam Airlines to maintain current operation.
The investment would be a long-term one as profit is not expected in a short period of time.
Under the deal, Sumitomo Life raised its shareholding at Bao Viet from current 17.48% to 22.09%.
In case of completing the deal, the Japanese company would raise its stake in Bao Viet to 22.09% and remains the Vietnamese insurer’s second largest shareholder.