13/09/2014 11:30 GMT+7 Email Print Like 0

PM backs Vietnam Airlines equitisation plan

Hanoi, September 12 (VNA) – The Prime Minister approved the equitisation plan for Vietnam Airlines, the national air carrier, with a chartered capital of approximately 14 trillion VND or 671.4 million USD.

According to the PM’s decision issued on September 10, the State holds a 75-percent stake in Vietnam Airlines.

The plan permits the business to launch its initial public offering (IPO) with 49 million shares. The Minister of Transport is mandated to set the initial price for the IPO and select strategic partners.

After the equitisation process has met the requirements and is completed, the company will be listed on the stock exchange in accordance with existing laws and regulations.

The 10,180 staff members will continue their employment.

By the end of 2014, the Government is expected to approve equitisation plans and initial public offerings for approximately 150 businesses. More than 430 State-owned enterprises face equitisation, with 253 still undergoing the business assessment process.

Vu Bang, chairman of the State Securities Commission, reported that the HCM and Hanoi stock exchange indices increased from 24 to 25 percent by late August 2014, a 40-per cent increase in market capitalisation compared to the beginning of the year.

Meanwhile, foreign investment capital increased by 2.5 percent compared to the same period last year.
VNA/VNP