Vietravel sells majority stake in airline
In this article (4)
Tourism company Vietravel has sold a 55.58 percent stake in Vietravel Airlines to an unspecified investor as it seeks more funding amid Covid financial pressures.
“Vietravel is no longer the parent company of Vietravel Airlines,” it stated recently.
In a filing last month, Vietravel revealed it held a 99.5 percent stake in the carrier.
Chairman of the leading tourism firm Nguyen Quoc Ky said in early May that selling a stake in Vietravel Airlines was part of a plan to restructure Vietravel into a holding company.
He called for investors to fund the airline.
As the airline only began to operate this year, it is still recording losses, which could affect Vietravel’s business figures, which are also low due to Covid-19, the company stated.
Vietravel posted a loss of VND293.3 billion ($12.78 million) in the first half this year, tripling year-on-year.
Its stock is limited to trading on Fridays due to its delay in publishing results.
Questions & Answers
Q.Which company now holds the majority stake in Vietravel Airlines?
Which company now holds the majority stake in Vietravel Airlines?
The article does not specify the identity of the investor who purchased the 55.58 percent stake. It only states that the stake was sold to an unspecified investor.
Q.What was the previous ownership percentage of Vietravel in Vietravel Airlines?
What was the previous ownership percentage of Vietravel in Vietravel Airlines?
Vietravel previously held a 99.5 percent stake in Vietravel Airlines. This information was disclosed in a company filing made last month, prior to the recent sale.
Q.What is the primary reason for Vietravel selling its stake in the airline?
What is the primary reason for Vietravel selling its stake in the airline?
Vietravel sold the stake to secure more funding, as it is facing financial pressures due to the Covid-19 pandemic. The sale is also part of a plan to restructure Vietravel into a holding company.
Reader pulse
Is selling the airline a smart move for Vietravel?
23,726 votes so far