Vietnam Airlines divests capital, tries to manage cash flow
According to information announced by Vietnam Airlines Corporation – Vietnam Airlines (stock code HVN), this airline has successfully divested 35% of its capital contribution in Cambodia Angkor Air, with a total value of about 35 million USD. The divestment of capital for the transferee is made according to the agreement between the two parties, in the share transfer contract.
The case is complete, Cambodia Angkor Air is no longer an affiliated company of Vietnam airlineS.
The company did not disclose information about the partner buying back this capital.
In the audited Consolidated Financial Statements for 2021, Vietnam Airlines said that from January 2022 and March 2022, the airline received 30 million USD and 4 million USD respectively from investors to buy back the capital. contributed at Cambodia Angkor Air. In 2019, Vietnam Airlines received a deposit of 1 million USD.
According to the agreement between the two sides, Vietnam Airlines will complete the terms of the agreement and liquidate the remaining 14% stake in Cambodia Angkor Air in 2022.
In 2009, Vietnam Airlines contributed 49% of capital and became a major shareholder in Cambodia Angkor Air. This cooperation is to provide maximum support for Cambodia Angkor Air in the process of expanding and developing activities, as well as performing maintenance, repair and commercial cooperation. However, from 2017, Vietnam Airlines started planning to divest from this airline. By 2020, when the Covid-19 epidemic had a heavy impact on production and business activities, the airline decided to withdraw its entire 49% stake in Cambodia Angkor Air.
This activity of Vietnam Airlines is one of the efforts to help the airline overcome a difficult period, prepare resources for the post-Covid recovery and development period, in the context of the airline’s severe cash flow depletion.
According to the audited consolidated financial statements for 2021, announced by Vietnam Airlines, this company has a loss after tax of 13,279 billion VND. The accumulated loss as of December 31, 2021 is VND 21,961 billion.
However, in the first 3 months of the year, although business prospered, Vietnam Airlines still suffered a loss of 2,685 billion dong, bringing the accumulated loss to 24,646 billion dong.
At a seminar on Vietnam’s aviation recovery and development in the recent context, Mr. Nguyen Ngoc Canh, Vice Chairman of the State Capital Management Committee, said that Vietnam Airlines had a serious cash flow shortage. facing the risk of insolvency, loss of equity.
Therefore, the National Assembly and the Government have proposed a support package of VND 12,000 billion for Vietnam Airlines, including VND 4,000 billion for refinancing from credit institutions, VND 8,000 billion for share issuance and charter capital increase; for refinancing loans, the interest rate difference is also calculated to convert into State capital invested in Vietnam Airlines, a supportive move by the State owner when holding 86% of the airline’s shares.
In addition, the Government has assigned the Capital Management Committee to directly work with businesses, focusing on two projects: The master plan to support the recovery and rescue of Vietnam Airlines after the pandemic.
In the overall restructuring project of the Corporation, the State Capital Management Committee asked the airline to restructure its assets (aircraft fleet), investment portfolio in member units, and land portfolio. and properties on land, divestment in investments that are not co-business (core business) of the enterprise; at the same time, restructure the organization, restructure production and business activities in the direction of compactness, innovate corporate governance, etc.
In addition, Vietnam Airlines also needs to restructure its capital sources, including issuing more shares to increase charter capital, raising capital from outside and even issuing corporate bonds, etc. votes guaranteed by the Government.
Therefore, in addition to divestment (as at Cambodia Angkor Air), restructuring the investment portfolio at subsidiaries and associates, Vietnam Airlines is accelerating asset restructuring solutions to supplement cash flow. .
According to the State Capital Investment Corporation (SCIC), the fixed cost of Vietnam Airlines a month is currently about 1,600 billion. Up to now, the airline has negotiated with 11 aircraft lessors, canceling the value of nearly 1 billion USD in the period from now to 2025.
Ngoc Ha
at Blogtuan.info – Source: vietnamnet.vn – Read the original article here
