The two sides have completed 70% of the negotiation process and are likely strike a stake sale deal in the first quarter next year, the Saigon Times online newspaper cited sources as saying.
The financial issue is not the reason why ANA decides to acquire half of the 20% stake Vietnam Airlines (VNA) plans to sell. It is because ANA will have to report to the Japanese competition authority if it buys more than a 10% stake in Vietnam Airlines, the newspaper reported, citing a source.
The two airlines have yet to reach an agreement on the price of VNA shares, but the price should be higher than 22,300 dong (one U.S. dollar) each at which the Vietnamese carrier sold a nearly 3.5% stake to two local banks at an initial public offering in October 2014.
VNA, which has taken delivery of modern A350 and Boeing 787 Dreamliner jets to upgrade is fleet, is expected to rake in at least 6.3 trillion dong if it succeeds in selling a 20% stake or 282 million shares to strategic investors.
VietJetAir, a Vietnamese private budget carrier, has unveiled a plan to launch an IPO at home at the end of 2015 or in early 2016 and called for foreign investors to step in.