YKVN advised SCIC in the transaction.
On September 13, State Capital Investment Corporation disbursed VND6.9 trillion ($300 million) to buy HVN shares, holding at least 31.08 per cent of the charter capital of Vietnam Airlines Corporation in order to help the company overcome its difficulties amid the COVID-19 pandemic.
The purchase will supplement capital for production activities and improve Vietnam Airlines’ short-term solvency. This is one of two solutions approved by the National Assembly to ease the airline’s difficulties.
Specifically, the State Bank refinanced credit institutions to lend additional capital to Vietnam Airlines. At the same time, the company was allowed to offer more shares to existing shareholders to increase charter capital, despite having negative equity.
Founded in 1956, Vietnam Airlines is the flag carrier of Vietnam. It is headquartered in Long Bien District, Hanoi, with hubs at Noi Bai International Airport and Tan Son Nhat International Airport.
The State Capital Investment Corporation is a state-owned holding company considered a National Wealth Fund of Vietnam. It was established on 20 June 2005 under the mandate of Prime Minister Phan Van Khai as part of a range of reforms aimed at enhancing the efficiency of state capital utilisation.
The YKVN team was led by managing partner Truong Nhat Quang (Picture), assisted by a team of associates.
Involved fees earner: Quang Nhat Truong – YKVN;
Law Firms: YKVN;