Aéroports de Paris to become ACV strategic investor
The Airports Corporation of Vietnam (ACV) plans to sell some 166 million shares to French airport authority Aéroports de Paris (ADP), which is set to become a strategic investor.
Illustrative photo (Photo: VNA)Hanoi (VNA) - The Airports Corporation of Vietnam (ACV) plans to sell some 166 million shares to French airport authority Aéroports de Paris (ADP), which is set to become a strategic investor.
ACV, the largest enterprise in Vietnam's transport sector, said in a draft resolution prepared for its first shareholders' meeting on March 16 in HCM City that the initial price of the shares are expected to be 13,100 VND (58 US cents) each.
With such share volume and price, ADP will hold some 7.4 percent of ACV's total equity of 22.4 trillion VND. If the agreement is successful, the French company will be restricted in transferring its shares for at least 10 years.
ACV Chairman Nguyen Nguyen Hung told the press in January that ADP was the only investor, at that time, that met the requirements of the Ministry of Transport to conduct negotiations in the role of a strategic partner.
Other organisations that proposed, but failed, to become strategic investors of ACV were Changi Airport International, a subsidiary of Singapore's Changi Airport Group, and the Bank for Investment and Development of Vietnam.
After launching an initial public offering on the HCM City Stock Exchange last December, ACV announced it would offer strategic investors a 20 percent stake. This means a remaining stake of 12.6 percent is still available for other investors.
Meanwhile, industry insiders said ANA Holdings Inc, owner of Japan's largest airline, All Nippon Airways, might be the next potential strategic investor of ACV.
Japan has expressed interest in the 336.6 trillion VND Long Thanh international aviation terminal, which will be developed by ACV in southern Dong Nai province, following the government's designation. Japan is reportedly considering funding the terminal with government capital set aside for development assistance.
Additionally, national flag carrier Vietnam Airlines has also decided to sell an 8.8 percent stake to ANA Holdings at an estimated price of nearly 109 million USD, and the agreement is expected to be concluded in June.
In another statement, ACV said concentrating resources for Long Thanh development will be one of its business strategies for the next five years. The company will mobilise 114.5 trillion VND to complete the first phase of the terminal by 2025.
Between 2016 and 2020, the company projects passenger growth rates of six to eight percent per year at its airport system. Also, it expects annual growth rates in freight to reach some five percent.
This year, it plans to report total revenues of 12.1 trillion VND, with revenues from services increasing 5.1 percent over last year. It is set to pay dividends at a rate of five percent, with pre-tax profits expected to reach 2.1 trillion VND.
The company also plans to spend no more than 5.8 trillion VND on infrastructure upgrades at half of its 22 nationwide airports this year, including major terminals in Hanoi, HCM City and central Da Nang city.
Currently, the State retains a stake of 75 percent in ACV.
Vu Anh Minh, the director of the transport ministry's enterprise management department, told Vietnam News Agency last November that the State's stake in ACV would be reduced from 75 to 65 percent "at a suitable time".
The reduction would depend upon the government's calculations in retaining its stake in the company, and the need for capital to assure progress in the Long Thanh project, he said.-VNA
You should also see
Localities get ready for fourth FDI boom
As the year 2024 is expected to witness the start of the fourth wave of foreign direct investment (FDI) to Vietnam, localities nationwide are getting ready to absorb foreign capital flows.
See more
Business
HCM City moves towards Net Zero
Ho Chi Minh City is building a project to restructure its industry towards sustainable development in the 2025-2030 period, with a vision to 2050, prioritising the use of high technology and reducing emissions towards net zero emissions by 2050.
Business
Old loans must endure higher interest rates temporarily: central bank
The average lending interest rate for new loans by commercial banks is reported at around 6.4% per year, a decrease of 0.7 percentage point per year compared to the end of last year. However, borrowers with loans issued before the latest rate adjustment still must pay higher rates, according to the State Bank of Vietnam (SBV).
Business
Vietnam among top domestic infrastructure investors: Ambassador
Vietnam is one of the leading countries in Asia in terms of investment for infrastructure development, allocating 5.7% of its Gross Domestic Product (GDP) to projects in this field, said Ambassador Dang Hoang Giang, Permanent Representative of Vietnam to the United Nations (UN).
Business
Vietjet adds more flights to Dien Bien
To meet the rising demands to visit Dien Bien of people and tourists during the celebration of the 70th anniversary of the Dien Bien Phu victory, Vietjet increased the frequencies of flights between Hanoi, Ho Chi Minh City and the northwestern province to 28 per week.
Videos
Agro-forestry-fisheries products nearly double in Q1
Total export revenue from agro-forestry-fisheries products in the first three months of this year is estimated at over 13.5 billion USD, up nearly 22% over the same period last year, according to the Ministry of Agriculture and Rural Development.
