Vietnam Airlines has struck a deal to sell an 8.8% stake for Japan’s All Nippon Airways for $108 million.
State-controlled Vietnam Airlines
), the largest air carrier in the country, has signed a memorandum of understanding under which the airline will sell an 8.8% stake to Japan’s All Nippon Airways
(ANA) for $108 million, VNA has said in a press release.
The deal will enable the Japanese five-star airline to transfer their its expertise to VNA, VNA said, referring to the criteria for selecting a strategic partnership.
The partnership will mark ANA’s first investment in a foreign flag carrier, as well as the first time Vietnam Airlines receives funds from a foreign company, according to the Nikkei Asian Review.
The two carriers will begin code-sharing as soon as the end of October, with the first code-share flights covering routes between Japan and Vietnam.
Vietnam Air is a member of the SkyTeam airline alliance while ANA is a member of the Star Alliance.
Ho Chi Minh City Securities Corp (HSC) said in a report in June 2014 that VNA would likely change to another alliance if it chose a strategic investor which does not belong to the SkyTeam.
VNA in November 2014 launched an initial public offering where it raked in 1.09 trillion dong (roughly $50 million) from selling 49 million shares, or a 3.5% stake, with two domestic banks Vietcombank and Techcombank being the two biggest buyers.
The airline planned to sell up to a 20% stake to strategic partners and 1.5% to its employees, aiming to cut the state holding to 75%.