Photo: Duc Anh
YKVN to consult Airports Corporation of Vietnam on share sale to strategic investor.
YKVN, a full service Vietnamese law firm, has won a VND6 billion ($268,740) contract to provide legal consultancy to Airports Corporation of Vietnam (ACV) in its negotiations over share sales to its strategic investor, Aéroports de Paris (ADP).
The contract will come into effect as soon as it is signed and is valid until December 31.
ADP was approved as ACV’s strategic investor by the Ministry of Transport last January. The ministry then assigned the ACV Equitization Steering Committee to prepare for the share sale.
ACV and ADP have had three official meetings and agreed that all deals will be completed this year. The ADP investment is one of the reasons behind the scheduled visit by French President François Hollande to Vietnam in September.
Just 48 hours after the Prime Minister approved ACV’s equitization plan, ADP sent a letter to the Ministry of Transport expressing its determination to become ACV’s strategic investor.
A global group, ADP’s capital stood at $4.81 billion at the end of 2014. It operates 37 airports around the world via its subsidiary ADP Management. Charles de Gaulle and Paris - Orly Airports are its largest in Europe. In 2014, revenue from its airports in Asia, Europe, and South America totaled $3.377 billion, with after-tax profit of $486 million.
In ACV’s initial public offering in March, ADP was offered AVC shares at the lowest price, of VND13,100 ($0.58), meaning it will have to part with at least $97 million to secure its 7.4 per cent. According to ACV’s equitization plan it will sell 20 per cent in total. BIDV and other major Vietnamese investors hoped to purchase shares but the standards for becoming a strategic investor were so strict that they could not be met by any Vietnamese investors.
Officially becoming a joint stock company in March, ACV has charter capital of over VND21 trillion ($940 million), equal to 2.177 billion shares at a price of VND10,000 ($0.44) each. The government still holds 95.4 per cent.
ACV operates 22 airports in Vietnam. In its targets for 2016 it is to welcome 73 million passengers, a 12.4 per cent year-on-year increase, 53 million of which are domestic, and cater to 516,000 commercial flights. Revenue is targeted at almost VND12.1 trillion ($541.9 million) and pre-tax profit at over VND2 trillion ($89.5 million).
YKVN has previously consulted the Vietnamese Government, international financial institutions, and multi-national corporations such as Procter & Gamble, Diethelm, Aventis, Sampoern and ExxonMobil. It also consulted Vietcombank, BIDV, VietinBank, and Agribank on legal issues.
- Airports Corporation of Vietnam
- Ministry of Transport