VietNamNet Bridge - Analysts believe that ANA Holdings has serious future intentions after buying an 8.8 percent stake of Vietnam Airlines.

Japan’s biggest air transport group All Nippon Airways (ANA) is set to become Vietnam Airlines’ strategic partner after buying 8.8 percent of the Vietnamese air carrier.

ANA is a global aviation group with 63 consolidated subsidiaries and 18 equity method affiliates.

Nguyen Tri Hieu, a renowned finance expert, was surprised about the decision by Vietnam Airlines to sell 8.8 million shares, worth $109 million, to ANA Holdings, which runs All Nippon Airways.

The deal is expected to be wrapped up by this June at the latest. After that, the two sides may discuss the continued sale of stakes in Vietnam Airlines.

Japan’s biggest air transport group All Nippon Airways (ANA) is set to become Vietnam Airlines’ strategic partner after buying 8.8 percent of the Vietnamese air carrier.

Hieu said if he were a strategic investor he would not have spent money on such a small amount of shares. He said the air carrier plans to sell 20 percent of its stake in total to strategic shareholders.

In general, any strategic investor would want more than 8.8 percent, possibly 20 percent or up to 51 percent, high enough to give him the right to control the enterprise.

Is ANA satisfied about the deal and its modest ownership ratio of 8.8 percent?

Hieu believes that there might be additional agreements that promise benefits for ANA.

However, Hieu said that the ownership ratio of 8.8 percent held by ANA, though low, still could be seen as an initial achievement gained by Vietnam Airlines when calling for investment from international air carriers.

Hieu, while saying that ANA took a risk in making the deal, believes that there are seasons behind the decision.

First, by injecting money into Vietnam Airlines, ANA wants to takes the first step to join the Vietnam economy. This is part of the Japanese investors intention to expand in the market.

Second, the financial deal would be the first step in a long-term business cooperation plan designed by ANA and Vietnam Airlines. There might also be other cooperation deals between Vietnam and Japan.

An analyst cited three more reasons that could have prompted ANA to proceed with the investment deal with Vietnam Airlines.

ANA could gradually cement its position in the Vietnamese market and aviation industry.
Second, there could be opportunities in providing services to other air carriers as the business field promises high profits. Third, Vietnam has an advantageous geographical position, which would allow ANA to develop into a powerful air carrier. 

Dat Viet