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Airports Corporation to take on strategic partner

The Vietnamese Government has granted permission to Aeroports de Paris (ADP) to buy 20 per cent of Airports Corporation of Vietnam (ACV) and become its strategic partner.

Airports Corporation to take on strategic partner

The contract is expected to be finalized shortly.

Prime Minister Nguyen Xuan Phuc met Mr. Augustin de Romanet de Beaune, Chairman and CEO of ADP, last week and pledged to create favorable conditions for the strategic partnership.

ACV needs to raise capital to improve Vietnam’s airport infrastructure. It is expected to invest $16 billion in building Long Thanh International Airport in Dong Nai province over the next decade to ease overloading at Ho Chi Minh City’s Tan Son Nhat International Airport. ADP has also expressed interest in investing in the project.

ACV’s chartered capital stands at VND21.7 trillion ($951 million). 2.1 billion of its shares listed on the UPCoM last November after its initial public offering (IPO) in 2015. It expects to list 2.1 billion shares on the Ho Chi Minh city Stock Exchange (HoSE) later this year.

It served a total of 81 billion passengers at 22 airports in 2016, an increase of 28 per cent against 2015. It also handled over 1 million tons of cargo, up 12 per cent.

ACV recorded net profit of VND2 billion ($87 million) on revenue of VND14.5 trillion ($635 million) and has set a target of revenue rising 8 per cent each year and pre-tax-profit 3 per cent from 2017 to 2020.

ADP suggested purchasing 30 per cent of ACV’s shares before the 2015 IPO. ACV initially intended to sell no more than 10 per cent to a strategic partner, but increased it to 20 per cent, which cuts State ownership from 95.4 per cent to 75 per cent.

ACV is a joint stock company operating under the model of a holding company and subsidiary company.

It manages and invests in 22 airports in Vietnam, including nine international airports: Tan Son Nhat, Noi Bai, Da Nang, Vinh, Cat Bi, Phu Bai, Cam Ranh, Phu Quoc, and Can Tho, and 13 national airports: Buon Ma Thuot, Lien Khuong, Rach Gia, Ca Mau, Con Dao, Phu Cat, Pleiku, Tuy Hoa, Chu Lai, Dong Hoi, Na San, Dien Bien and Tho Xuan.

VN Economic Times