PM approves Vietnam Airlines equitization project

Prime Minister (PM) Nguyen Tan Dung has issued decision No 1611 approving the equalization project for mother company – Vietnam Airlines Corporation (Vietnam Airlines).

Vietnam Airlines inherits legal rights, responsibility and benefits of the Vietnam Airlines Corporation before being equitized and continues to operate the current business of the Vietnam Airlines Corporation and other business activities under legal regulations, according to the decision.

Under the decision, Vietnam Airlines will keep it’s existing state capital and issue additional shares to raise charter capital. The corporation owns more than VND14 trillion of charter capital. Total IPO (Initial Public Offering) shares are 1.4 trillion, in which the state holds 75%.

The PM granted authority to Minister of Transport to decide the starting price of IPO shares, decide criteria, choose strategic investors, approve the equitization balance sheet, expenditure and instruct the conversion of Vietnam Airlines into a joint stock company under legal regulation.

PM Dung asked the Ministry of Transport to direct and choose a suitable time to reduce the percentage of capital equity owned by the State to not less than 65% of the corporation’s charter capital.

(Source: CPV)