Hanoi (VNA) - Vietnam Airlines plans to reduceState ownership to 51 percent of the charter capital in the next three years.

This is part of the report on the results of restructuringVietnam Airlines in the 2013-16 period and the plan from 2017 to 2020, whichhas just been sent to relevant bodies for approval. About 430 million shares ofthe State will be divested to a tough 51 percent.

The roadmap to reduce State ownership in the company isdivided into two stages.

Specifically, in the 2017-18 period, Vietnam Airlines willcomplete the increase of charter capital by issuing an additional 191.191million shares to existing shareholders and transfer the right to purchase 57.9million shares, which has been approved by the Government in May 2017.

In case Vietnam Airlines successfully sells all the shares and selectsinvestors to buy the above-mentioned 57.9 million shares (expected before thefirst quarter of 2018), the firm will achieve its double targets includingincrease of the charter capital to 14 trillion VND and Vietnam Airlines’owner’s equity to 16 trillion VND. At the same time, State ownership willdecrease by 4.1 percent to 82.1 percent of the charter capital.

In the period 2018-19, Vietnam Airlines will continueoffering shares worth about 10-20 percent of the charter capital. By this time,State ownership will decrease to 60-65 percent of the charter capital.

If the roadmap is successful, the ratio of State-ownedcapital in Vietnam Airlines will be only about 51 percent, in line withDecision No.1232/2017/QĐ-TTG approving the list of State-owned enterprisesmarked for divestment during 2017-20, signed by Deputy Prime Minister Vuong DinhHue on behalf of the prime minister, dated August 17, 2017.

According to General-Director of Vietnam Airlines, Duong TriThanh, after the capital increase is completed in the first phase, the firmwill move its listing, code HVN, from the Hanoi Stock Exchange (HNX) to HCMStock Exchange (HOSE) in the second quarter of 2018. The listing on HOSE isexpected to help improve the liquidity of HVN shares, while enhancing theposition and image of Vietnam Airlines, creating favourable momentum for itscapital increases and divestments in the future.

Vietnam Airlines has a charter capital of nearly 12.28trillion VND, of which the State holds 1.057 billion shares, equivalent to 86percent of the charter capital. Of the remaining shareholders, ANA HoldingsInc, Japan’s largest aviation group, holds 107 million shares, representingnearly 8.8 percent of the charter capital.

The methods to increase charter capital to reduce the rate ofState ownership are being considered by representatives of State-owned capitalat Vietnam Airlines.-VNA