VNA completes procedures to become joint stock company

Vietnam Airlines (VNA) has completed all legal procedures to convert its operation from a State-owned enterprise to a joint stock company, the corporation said on October 16.

Representatives of Vietnam Airlines at the ceremony to convert the corporation's operation from a State-owned enterprise to a joint stock company. - Photo

The airline will next undertake procedures to list its shares on the stock exchange in the near future.

Speaking at a ceremony held in Ha Noi on October 14, Deputy Minister of Transport Nguyen Nhat said the ministry appreciated the VNA's implementation of equitisation, which was seen as a turning point for the corporation.

He said the corporation had not only successfully completed equitisation, but had also called for strategic shareholders, especially ANA Holdings Inc., among the largest aviation groups in Japan and in the world.

Pham Viet Thanh, secretary of the Central Businesses Bloc's Party Committee, said the corporation needed to complete procedures to raise charter capital and sell its shares for its tangible shareholders as well as undertake steps to list its code soon on the stock market.

Vietnam Airlines was established as a State-owned single member limited company, but it was equitised in 2014.

It was given a Skytrax four-star rating in July this year and is striving to become a five-star airline by 2020.

The corporation generated an estimated consolidated revenue of more than VND52.5 trillion (US$2.34 billion) in the first nine months of this year, up six percent year-on-year. Consolidated pre-tax profit during the period reached VND2.6 trillion, the company said in its latest press release.

Source VNS