Vietnam Airlines has divested a 35 percent stake in Cambodia Angkor Air for US$35 million, so the Cambodian airline is no longer an affiliated company of the Vietnamese flag carrier, which announced the sale on the website of the State Securities Commission.
The deals were completed on January 3 and March 29 as the Vietnam Airlines received respective $30 million and $4 million from investors purchasing the shares, along with a $1 million escrow in 2019.
In 2009, Vietnam Airlines acquired a 49 percent stake and became a major shareholder of Cambodia Angkor Air, with a promise to help its Cambodian peer expand its business.
However, it expressed the intention to withdraw the stake in 2020 due to the unpredictable adverse impacts of the COVID-19 pandemic.
While the airline did not reveal the name of the buyer, it plans to sell the remaining 14 percent stake later this year.
Vietnam Airlines’ accumulated losses climbed to VND21.96 trillion ($946.3 million) last year, roughly the same as its charter capital.