Cambodia Angkor Air was founded in 2009 from the cooperation of Vietnam Airlines and Cambodian Royal Government. Vietnam Airlines contributed 49% of the fund under the joint venture contract.
On May 27, Vietnam Airlines Corporation (stock code: HVN) announced that they have completed the transfer of 35% of Vietnam Airlines Corporation’s shares in Cambodia Angkor Air (K6) to the transferee according to the agreement between the two parties in the share transfer contract. After the transfer, K6 is no longer an associate company of Vietnam Airlines Corporation.
According to the 2021 audited consolidated financial statements, January 3 and March 29 this year, HVN received USD 30 million and USD 4 million respectively from the investor who redeemed Vietnam Airlines Corporation’s share in K6 and that HVN also received a deposit of USD 1 million in 2019. The amount of USD 35 million above corresponds to 35% of K6 shares.
Although the money will not be received until 2022, the transfer of share title was taken place from 2021, HVN’s report showed that K6 was no longer an associate company and revenue from the financial activities contributed more than VND 647.7 billion from the interest of contributed capital transfer.
The above income has helped HVN reduce their loss in 2021 and their equity is still more than zero, escaping the delisting judgment.
Cambodia Angkor Air was founded in 2009 under the cooperation of Vietnam Airlines and Cambodian Royal Government. According to the joint venture contract, Vietnam Airlines contributed 49% of capital in Cambodia Angkor Air with the historical price of VND 868.5 billion.
By the end of the year, after divesting 35% of shares, the balance 14% of K6 shares was transferred by HVN to the investment portfolio to contribute the funds to other entities with the historical costs of VND 248 billion.
In 2021, like other airlines in the region and the world, K6’s production and business activities continue to be seriously affected by the epidemic. To minimize losses, K6 has implemented the solutions of restructure, downsizing, maintaining the operation of a few main flight lines with minimal frequency, completely cost cutting, negotiating on payment reduction, delay, taking the advantage of every opportunity to increase the exploitation of charter flights and cargo flights to help adding the cash flow to maintain the operations. However, K6’s 2021 loss is USD 17.7 million, the loss is increased by 37.2% against 2020.
Source : Cafebiz