Vietnam Airlines earns 35 million USD after selling Cambodia Angkor Air | Company

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A Vietnam Airlines plane. (Photo: VNA)

Hanoi (VNS/VNA) Vietnam Airlines JSC (HoSE: HVN) recently announced that it has completed the transfer of 35% of its shares in Cambodia Angkor Air (K6) to the receiver, pursuant to an agreement between the two parties in the Share Transfer Agreement.

After the transfer, K6 is no longer an affiliate of the flag carrier.

According to audited 2021 consolidated financial statements, on January 3 and March 29, the airline received $30 million and $4 million, respectively, from investors to buy out the company’s contributed capital from K6.

He had also received a deposit of 1 million USD in 2019. The total of 35 million USD corresponds to 35% of K6 actions.

Although the money was only paid until 2022, due to the shareholding transfer in 2021, Vietnam Airlines’ report no longer registered K6 as a partner, and the income from financial activities has posted a gain of more than 647.7 billion VND thanks to the benefit of the transfer of the contributed capital.

The revenue helped the carrier reduce its loss in 2021 and its equity is still above zero, escaping a write-off penalty.

Cambodia Angkor Air was established in 2009 under the cooperation of Vietnam Airlines and the Royal Government of Cambodia.

As part of the joint venture contract, Vietnam Airlines contributed 49% of the capital of Cambodia Angkor Air with the historical price of 868.5 billion VND.

At the end of 2021, after selling 35% of the shares, the remaining 14% of K6 shares were transferred to the investment portfolio to provide capital to other entities at the historic price of VND 248 billion.

Last year, K6’s business operations were heavily affected by the COVID-19 pandemic, like other airlines in the region and around the world.

To minimize losses, K6 has implemented solutions to restructure, reduce the scale of operations, maintain only a few main routes with minimum frequency to reduce costs, negotiate to delay payments and take advantage of every opportunity to increase l operation of charter and cargo flights. to supplement cash flow to maintain operations.

However, it had lost $17.7 million last year, a 37.2% increase from losses in 2020.

On the stock Exchange, HVN fell 1.04% to trade at VND18,950 per share at 10:55 a.m. (local time) after gaining for four consecutive sessions. VNS

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