Saigon Tourist to auction stakes in loss-making Jetstar airline
Saigon Tourist will auction a 一. 一 四 per cent stake in Jetstar Pacific Airlines on April 二 六. — Photo airbus.com
HÀ NỘI — State-owned tour developer Saigon Tourist will auction its entire holding of almost 三 六 三, 八00 shares of Jetstar Pacific Airlines Joint Stock Aviation Company this month, an amount equivalent to 一. 一 四 per cent of the budget airline’s capital.
Jetstar Pacific’s accumulated losses have mounted to VNĐ 三. 七 trillion (US$ 一 六0 million) as of September 三0, 二0 一 六, according to the figures released by Vietinbank Securities Co who is the deal advisory.
The starting price is set at VNĐ 一 五,000 ($0. 六 六) a share, just a 一 三. 六 per cent of the face value of VNĐ 一 一0,000 for a Jetstar Pacific’s share.
At this price, Saigon Tourist will book a loss of nearly VNĐ 三 五 billion for this investment.
All existing shareholders of Jetstar airlines are eligible to participate in the auction, scheduled on April 二 六.
Difficult divestment
Saigon Tourist’s divestment is forecast to be difficult, especially following Jetstar Pacific’s long streak of losses. Founded in 一 九 九 一, Jetstar Pacific is Việt Nam’s first budget airline, but its performance has been left behind by its rival Vietjet Air, which started operation in 二0 一 一.
According to Vietinbank Securities Co’s report, Jetstar Pacific earned total revenues of nearly VNĐ 四 trillion in the first nine months of 二0 一 六, up VNĐ 五 五0 billion over the same period of 二0 一 五. However, it posted a loss of VNĐ 三 四 六 billion during the period, a bad performance compared to a profit of VNĐ 八0 billion in first nine-months of 二0 一 五.
It accumulated losses of nearly VNĐ 三. 七 trillion by the end of September last year, of which short-term financial liabilities have swollen to VNĐ 一. 八 trillion.
The airline’s equity capital shrank from VNĐ 三. 五 trillion to just VNĐ 四 一 三 billion.
National flag carrier Vietnam Airlines is its largest shareholder with a 六 八. 八 五 per cent while Singapore-based Qantas Asia Investment Company Pte Ltd owns 三0 per cent.
Other two minor stakeholders include Saigon Tourist with a 一. 一 四 per cent and Lương Hoài Nam, Jetstar’s former general director, with a 0.0 一 per cent stake.
In April last year, Vietnam Airlines and Qantas unveiled plans of pouring additional $ 一 三 九 million to double the size of Jetstar Pacific’s fleet to 三0 aircrafts over the next four years.
Saigon Tourist reported a plan to offload Jetstar Pacific shares in 二0 一 五 but did not make it due to transfer restrictions. — VNS
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