Plan to be put to shareholders in March.
Vietnam Airlines (VNA) has released a report detailing its equitization plan, which is to be submitted to the first shareholders meeting, in March.
It will sell more than 282 million shares (equal to 20 per cent of its charter capital) to no more than three investors. The sale price is to be determined on the basis of commitments made by strategic investors but will be no less than VND22,300 ($1) per share. It is likely to earn around VND6.3 trillion ($295.09 million) from the issuance, which is expected to be invested in aircraft.
The company is yet to decide on potential strategic partners. “This process will not be completed by the time of the first shareholders meeting on March 12,” the report stated.
VNA plans to invest VND23 trillion ($1.08 billion) in 2015, or 2.5 times higher than its estimated investment in 2014. Of these, investment in developing its fleet will be about VND21 trillion ($983.64 million).
The carrier expects to have 12 new aircraft, including three A321s, four A350s, and five B787-9s in 2015 and it will return two leased A330s. It also plans to sell three ATR-72 aircraft and two B777- 200ER aircraft. By the end of 2015 its fleet will consist of 80 aircraft under the plan.
VNA will manage the surplus from the sale of shares to strategic shareholders to increase State capital in the enterprise when its charter capital increases. The capital is currently around VND11.2 trillion ($524.61 million) and is expected to increase to VND14 trillion ($655.76 million).
VNA will also consider production planning for 2015 and orientations and objectives for 2015-2018. It expects to carry approximately 16.7 million passengers transported, for 6.2 per cent growth against last year. Consolidated revenue will be over VND70 trillion ($3.28 billion), 2.5 per cent lower than in the previous year, of which the parent company is estimated to earn nearly VND55 trillion ($2.58 billion), equivalent to its 2014 result.
It explained that estimated revenue is lower than in 2014 due to reduced fuel prices, so part of the fuel surcharge on ticket prices will also be cut. It expects to earn consolidated pre-tax profit of VND613.5 billion ($28.74 million), 5 per cent lower than in 2014. However, the profit of the parent company is estimated at VND180 billion ($8.43 million), 11 per cent higher than in 2014.
In the middle of November last year VNA successfully auctioned 49 million shares (representing 3.475 per cent of its charter capital). Before that, 20.8 million preferred shares for employees (1.475 per cent) and 705,092 preferred shares for the union (0.05 per cent) were also sold.
- equitizaton plan