Vietcombank buys $3.6mn worth of new Vietnam Airlines shares

Vietcombank, a majority Vietnamese state-owned commercal bank, has signed up to buy 8.35 million shares in Vietnam Airlines (VN, Hanoi) in a deal expected to be worth VND83.5 billion (USD3.6 million), it announced in a stock exchange disclosure.

In the troubled flag carrier’s VND12 trillion dong (USD528 million) rescue package approved by the National Assembly last year, Vietnam Airlines was allowed to issue new shares worth VND8 trillion (USD352 million) to existing shareholders to raise capital.

With a shareholding of 14.8 million shares, Vietcombank’s acquisition of further 8.35 million is expected to conclude by September 17. That will take its stake to 23.1 million shares, equivalent to 1.044% of the airline’s charter capital.

Earlier this week, as previously reported, Vietnam’s sovereign wealth fund the State Capital Investment Corporation (SCIC) also bought into Vietnam Airlines’ rights offering as part of state-led efforts to save the airline. It paid VND6.89 trillion (USD303 million) to acquire 689.5 million shares, so that it now holds “at least 31.08% of Vietnam Airlines’ charter capital,” it said.

Nevertheless, Vietnam Airlines’ share price unexpectedly declined by 6.4% on September 15 after seven consecutive days of increase and continued to decline on September 16.