Transport Ministry approves valuation ahead of equitization in second quarter.
As part of preparations for the equitization of Airports Corporation of Vietnam (ACV) in the second quarter of this year, the Ministry of Transport has approved the valuation of VND37.919 trillion ($177 billion) as at June 30, 2014.
The value of State capital is VND20.769 trillion ($970.95 million), excluding the value of assets in the flight services field. Debts owed by the Agribank Financial Leasing Company II are irretrievable and so excluded from the valuation.
The plan is to sell 25 per cent and issue additional shares to increase its charter capital, with the State holding 75 per cent post-equitization.
ACV’s revenue in 2014 was estimated at VND8,571 trillion ($400.69 million), an 0.86 per cent increase against 2013. Pre-tax profits, however, were VND1.256 trillion ($58.68 million), a 7.7 percent decline compared with 2013. ACV’s charter capital stands at approximately VND14.7 trillion ($687.22 million).
According to Minister of Transport Dinh La Thang, the sale of State capital will contribute to the first phase of investment in the Long Thanh International Airport, near Ho Chi Minh City. The equitization therefore plays an important role in the development of Vietnam’s aviation industry.
ACV reported that the Long Thanh International Airport project will receive investment from many capital sources. The first phase (2014-2020) is estimated to need approximately $5.6 billion, of which State capital and ODA will account for about 53 per cent, with the remainder being mobilized from elsewhere.
ACV was founded in 2012 by unifying three airport corporations in the north, south and central regions. It operates as a parent - subsidiary company with 24 dependent accounting units and manages 22 domestic and international airports, dominating the market in the field of providing services to the aviation industry at these airports.
In 2014 ACV conducted the equitization of two subsidiary companies - Southern Airport Services Company Limited (SASCO) and Saigon Ground Services (SAGS). SAGS received orders 15 times higher than shares offered, with the winning price being 3.6 times higher than the starting price.