Japan’s ANA to buy 8.8% stake in Vietnam Airlines Corp

Visual from the Vietnam Airlines

Vietnam Airlines Corp. will sell an 8.8 percent stake to ANA Holdings Inc., owner of Japan’s biggest airline, the Vietnamese carrier’s chief executive officer said.

The operator of All Nippon Airways will pay $109 million for its stake, with the deal set to close sometime between March and June, Pham Ngoc Minh said in a telephone interview Tuesday. The two airlines will discuss more stake sales later, he said.

ANA has been scouting for acquisitions in Southeast Asia since 2013 after raising $1.8 billion in a share sale. A plan to buy a stake in Myanmar’s Asian Wings Airways Ltd. was canceledin 2014.

“We chose ANA since they’re a big, prestigious airline with a large market that does not compete with ours,” Minh said. “ANA’s experience and strengths will help Vietnam Airlines expand.”

Strategic Partner

ANA spokesman Ryosei Nomura confirmed the company had been negotiating with Vietnam Air but declined to provide more details. The Nikkei reported the deal earlier Tuesday.

ANA shares hit their lowest point since June on Tuesday and were down 1.5 percent at 324.3 yen as of 10:12 a.m. in Tokyo.

Last year, Vietnam Air said it was aiming to select a strategic partner willing to purchase a 20 percent stake by the time shares sold in an initial public offering in 2014 start trading next year when a lock-up period expires. The carrier, set to transform its fleet with deliveries of the newest Airbus Group SE and Boeing Co. wide-body models, would prefer to link up with another carrier, Minh said in an interview in June.

Vietnam Air is a member of the SkyTeam airline alliance, which also includes Air France and Korean Air Lines Co. ANA is a member of the Star alliance, which includes Singapore Airlines Ltd. and United.

Also Read: Japanese investor keen on strategic stake in Vietnam Airlines

Vietnam Airlines to reduce state’s stake, seeks strategic partners

After IPO, Vietnam Airlines plans 21.5% divestment

(Nguyen Dieu Tu Uyen and Kiyotaka Matsuda)

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.