AsemconnectVietnam - The Vietnam Technological and Commercial Joint Stock Bank (Techcombank) has sent official document to the State Securities Commission (SSC) to announce the plan for trading shares of the parent company Vietnam Airlines Joint Stock Company (UpCoM:HVN).

Notably, despite not being a big shareholder of Vietnam Airlines, Techcombank still has to make report about the transactions, because representative of Techcombank’s capital at Vietnam Airlines – Nguyen Xuan Minh – is the member of HVN’s Board of directors.

According to notice of Techcombank, the bank registered to sell 21 million shares of HVN in order to restructure the portfolio. The trading method is put-through and order matching, with trading time scheduled from February 23rd to March 24th 2017.

As expected, after the trading, Techcombank will only hold 18.705 shares of HVN, significantly down compared to the current volume of 21,018,605 shares (1.71 percent). It is noteworthy that this move is another drastic step of Techcombank in the plan to divest capital from HVN.

Earlier, in the period from February 14th to February 20th 2017, Techcombank constantly matched orders to sell 3.8 million shares of HVN, in order to reduce the ownership from 24,818,705 shares (2.02 percent) to 21,018,605 shares (1.71 percent). According to information, in this period, the face value of HVN fluctuated from 39,500 dong to 42,300 dong per share. Techcombank has grossed 150.1 to 160.74 billion dong after the deal.

Techcombank is one of the first public shareholders of HVN, after the firm carried out the Initial Public Offering (IPO) in late 2014. At this IPO, Techcombank successfully purchased 25,760,000 shares in the total offering volume of 49,366,200 shares. With the average winning price of the IPO being 22,307 dong per share, it can be seen that after divesting capital in HVN, Techcombank will gross a considerable profit, because the current market price of HVN is always above 40,000 dong per share. It should be noted that Techcombank is one of the largest creditors of HVN.

In the morning of February 20th 2017, Vietnam Airlines has held an extraordinary shareholders meeting. A notable content of the meeting was that instead of contributing all the revenue to the State, and turning it to be a source of capital which the State can use to contribute to Vietnam Airlines when the firm increases charter capital, the approved plan at the shareholders meeting is that Vietnam Airlines will use this surplus to increase its charter capital (sharing bonus to existing shareholders).

The shareholders committee at the meeting also approved the sale and leaseback policy of the four aircrafts scheduled to be received in 2017 including one B787-9 aircraft and three A350 aircrafts. In the fourth quarter of 2016, Vietnam Airlines sold and leased back three aircrafts and made a profit of one million US dollar per unit, a relatively modest number. However, representative of Vietnam Airlines said that the sale and leaseback method is not used for making profit but that aims to reduce debts. With the application of this method, Vietnam Airlines estimated that the needs for investment and borrowings to purchase aircrafts decline by about 544 million US dollars compared to the initial plan.

Source: Viettimes