September 15, 2021 | 06:17 GMT+7

SCIC buys Vietnam Airlines shares

Khánh Vy - Tra My -

State Capital Investment Corporation secures 31.08% stake on behalf of the government.

Photo: Illustration
Photo: Illustration

In response to an urgent request to allay the difficulties facing Vietnam Airlines due to Covid-19, the State Capital Investment Corporation (SCIC) outlaid VND6.894 trillion ($301.7 million) on September 13 to secure a holding of some 31.08 per cent in the national flag carrier.

The purchase bolsters its capital and improves its short-term solvency, limiting the impact of the pandemic.

Vietnam Airlines will pay off all overdue debts, make up for shortfalls in business activities, and repay short-term and long-term bank loans. It commits to not use the capital for investment, procurement, or activities not directly serving production and business.

It will soon complete a restructuring project to ensure it adapts to the new circumstances, overcomes the difficulties, recovers soon, and develops sustainably.

The right to buy additional Vietnam Airlines shares is divided among existing shareholders. The government assigned the SCIC to buy shares owned by State shareholders, with a value of about VND6.88 trillion ($301.13 million).