Vietnam Airlines completes sale of 35% stake in Cambodian airline

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Vietnam Airlines has announced the sale of its 35% stake in Cambodia Angkor Air in deals worth $35 million.

A plane takes off at Noi Bai International Airport. Hanoi Times Photo: Le Thanh

The deals were completed on January 3 and March 29, with the Vietnamese airline receiving $30 million and $4 million, respectively, from the investors buying the stake, as well as an escrow of $1 million.

In 2009, Vietnam Airlines acquired a 49% stake and became a major shareholder of Cambodia Angkor Air. Although the airline has not disclosed the name of the buyer, it plans to sell the remaining 14% stake later this year.

Under the agreement, the Vietnamese airline would support its Cambodian counterpart in expanding aircraft operation and maintenance, as well as other services. In 2021, Vietnam Airlines earned VND235 billion ($10.1 million) from providing services to Cambodia Angkor Air.

Since the outbreak of the Covid-19 pandemic in 2020, Vietnam Airlines had been planning to withdraw its stake in the Cambodian airline to deal with the severe impacts of the pandemic.

To overcome the current difficulties, Vietnam Airlines has chosen to restructure its current operations and investment activities.

In 2021, the airline racked up losses of almost VND 22 trillion ($963 million). The government is currently the largest shareholder of Vietnam Airlines, holding 86.19% of the equity through the Commission for State Capital Management (CSCM), followed by the government investment arm State Capital Investment Corporation (SCIC) ( 31.14%) and the Japanese airline ANA Holdings (5.62%).

As of December 31, Vietnam Airlines’ total assets amounted to over VND63 trillion ($2.75 billion) and short-term debts to VND14.3 trillion ($626 million), a increase of 3 trillion VND (131.3 million dollars) since the beginning of the year. .

Source: Hanoi Times

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