Sovico Aviation to buy  Vietjet shares

Vietjet planes. — Photo courtesy of the airline

HÀ NỘI — Sovico Aviation Holdings Company (Sovico Aviation) has registered to buy 33 million shares of Vietjet Aviation Joint Stock Company (HoSE: VJC).

The deal is being executed between November 12 and December 11, 2020 via put-through and/or order-matching transactions, Vietjet said in a statement. 

The move by Sovico Aviation, Vietjet’s blockholder, shows its confidence in Vietjet’s recovery post COVID-19 due to the airline’s effective and flexible business solutions in response to the ups and downs of the aviation market.

Vietnamese airlines’ stocks lifted on November 10, 2020 as investors believed in the rebound of aviation businesses, which are deemed the leverage for other economic sectors. Shares of the two largest Vietnamese airlines – Vietjet (VJC) and Vietnam Airlines (HoSE: HVN) – outstood among other stocks.

Vietjet shares hit the ceiling price on November 10, soaring 7 per cent to VNĐ113,400 (about US$4.8) apiece with asking volume being down to zero and bidding volume increasing up to 238,000 shares.

Meanwhile, Vietnam Airlines shares jumped 5.6 per cent to VNĐ27,500 ($1.1) apiece while the Airports Corporation of Vietnam stock (UpCom: ACV) also headed north, up by 5.4 per cent to VNĐ66,400 ($2.8) apiece.

The growth of Vietjet shares contributed 1.12 points to the benchmark VN-Index on November 10, helping the index beat the resistance of 970 points, which was its previous peak in October, and entered a growing trend.

Foreign investors, meanwhile, finally ceased their net sale for five consecutive sessions on November 13. They instead poured money into VJC, partly making the stock one of the trading highlights on HoSE with transaction value totalled more than VNĐ166.3 billion ($7.2 million).

Flight network recovery, cheap tickets and stimulus for tourism demand are measures that airlines are carrying out at the time.

Industry experts believe that Viêt Nam’s aviation is set on the path of positive recovery with Vietjet in particular gaining certain advantages over other carriers. The airline is launching new products and services to meet the increasing demand of the customers.

Vietnamese airlines have fully resumed their domestic flight network and is ready to reopen international flights as soon as the Vietnamese government allows them to do so, meeting the double targets of COVID-19 prevention and economic development.— VNS