The government of Vietnam is looking to dilute its share in the national carrier by selling 20% stake to Japan’s All Nippon Airways which is looking for a strategic investment. The deal will help lower Vietnamese government’s stake in the state owned carrier to 75% which currently stands at 95%. The Japan based airlines has been looking into various asian markets to consolidate its operations after raising close to $1.6 billion in 2012.
Japan’s All Nippon Airways is discussing the possibility of taking a strategic stake in national flag carrier Vietnam Airlines, which was partially privatized last year, the Financial Times reported Sunday. The report quoted Shinichiro Ito, ANA chairman, as saying that the airline group was in discussion with “several carriers” as part of its strategy to expand internationally and to seek synergies in the Asian market. The government has been seeking a strategic partner to help Vietnam Airlines expand, after selling 5 percent to investors last year in an initial public offering.
The carrier is seeking strategic partners to sell another 20 percent of the company, it told shareholders at a meeting in Hanoi last March. After a 20 percent stake of the airline is sold to strategic investors, the government’s share will shrink to 75 percent from the current 95 percent. Chief executive Pham Ngoc Minh revealed that the airline is in the process of selecting a foreign strategic investor, but declined to name any specific firm, according to Reuters. ANA generated US$1.6 billion in a share offer in 2012 specifically to fund purchases in Asian airlines.