Singapore’s sovereign wealth fund GIC pares stake in VietJet Air

VietJet Air CEO Nguyen Thi Phuong Thao speaks behind a model of a VietJet aircraft during an interview in her office in Ho Chi Minh City, Vietnam, January 10, 2017. Photo: REUTERS/Kham/File Photo

Singapore’s sovereign wealth fund GIC has reduced its ownership in Vietnam’s budget airline VietJet Air (VJC) to 4.97 per cent and is no longer a major shareholder of the carrier.

In a disclosure to Ho Chi Minh City Stock Exchange, GIC said it sold 265,900 shares of VJC to bring down its stake from 5.03 per cent earlier.

Meanwhile, Sovico Holdings, 52 per cent owned by VietJet Air CEO Nguyen Thi Phuong Thao, registered last month to buy additional 13.67 million shares of the low-cost airline. If successful, Sovico will increase its holding from 4.56 per cent currently to 7.59 per cent.

Going by the current stock price of VND203,000 ($8.98), Sovico is expected to spend approximately VND2.8 trillion ($123.2 million) to up its ownership in the airline.

CEO Nguyen Thi Phuong Thao directly owns 39.6 million shares, equivalent to an 8.76 per cent stake, in the airline.

Sunflower Sunny Investment Company Limited, wholly-owned by Thao, currently is the largest shareholder of VietJet Air with 129 million shares, equivalent to a 28.57 per cent stake. HD Bank, of which Thao is the permanent vice-chairman, also owns a 5 per cent stake in the carrier.

VietJet’s $170-million IPO, which attracted buyers like BNP Paribas, Deutsche Bank and JP Morgan, was Vietnam’s first internationally marketed and at that time, its largest initial public offering. GIC was the only foreign major shareholder in the company at that time. Local legislation defines a major shareholder as one with at least 5 per cent stake and voting rights.

The low-cost carrier’s total net revenue in 2017 stood at nearly VND42.258 trillion ($1.8 billion), a year-on-year increase of 53.7 per cent. Its pre-tax profit was approximately VND4.755 billion ($211.3 million), up 75.9 per cent year on year.

Also Read:

Vietnam Dealbook: Sovico ups stake in VietJet Air; SCIC sells MB Bank shares

VietJet IPO set to raise $170m after pricing in middle of range

Singapore’s GIC says to up investment in Indian renewables firm Greenko

VietJet $1.2b listing set for Feb 28, GIC is large shareholder

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.