SINGAPORE, 26 November 2020: Sovico Aviation Holdings Company (Sovico Aviation) has registered to buy 33 million shares of Vietjet Aviation Joint Stock Company (HoSE: VJC).
The deal will be executed by 11 December 2020 via put-through and/or order-matching transactions.
Such a move by Sovico Aviation, Vietjet’s blockholder, suggests confidence in Vietjet’s recovery post-Covid-19 business response to the fluctuations in the aviation market.
Vietnamese airlines’ stocks lifted 10 November as investors confidence believed in the rebound of aviation businesses, which are deemed as the leverage for the 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 10 November soaring 7% to VND113,400 (USD4.8) apiece with asking volume being down to zero and bidding volume increasing up to 238,000 shares. Vietnam Airlines shares jumped 5.6% VND27,500 (USD1.1) apiece while the Airports Corporation of Vietnam stock (UpCom: ACV) also headed north, up by 5.4% to VND66,400 (USD2.8) apiece.
Industry experts believe that Vietnam’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.
Vietnam has fully resumed its domestic flight network and is ready to reopen international flights as soon as the Vietnamese government gives the green light, helping to achieve economic development while taking precautionary measures to prevent Covid-19.
