The noisiest commercial affairs in 2013

The commercial affairs worth hundreds of millions or billions of dollars were contracted in 2013.

 

 

VietjetAir buys 100 aircraft worth $9.1 billion

On September 25, the Vietnamese private air carrier VietJetAir and the French aircraft manufacturer Airbus signed a memorandum of understanding (MOU) on the order of 100 Airbuses, worth $9.1 billion.

The Vietnamese airline has placed the order as a part of its plan to develop its fleet into the most modest one in the region.

According to Airbus, the first aircraft of the order would be delivered in 2014.

The high value of the contract, at $9.1 billion, raised the worry about the Vietnamese air carrier’s finance arrangement capability for the deal.

On this issue, VietJetAir Managing Director Luu Duc Khanh affirmed that the airline considered necessary solutions carefully before signing the MOU.

Khanh said 10-20 percent of the contract value would be sourced from commercial bank loans, while the remaining would be from the countries’ export credit financing programs. VietJetAir also considers issuing bonds or making IPO (initial public offering) to seek capital.

Vietnam Airlines buys engines worth $1.7 billion

On October 28, the Vietnamese national flag air carrier Vietnam Airlines signed a contract on the purchase of aircraft engines with General Electric.

Under the contract valued at $1.7 billion, Vietnam Airlines buys 40 GEnx engines which would be used for the Boeing 787 Dreamliners. The deliveries would be made in 2015.

GEnx engine is considered the most advanced jet engine nowadays, made of carbon fiber composite material which has higher durability and easier maintenance.

According to Pham Ngoc Minh, Vietnam Airlines’ CEO, the contract would help the airline to upgrade the quality of Dreamliners 787-9 and better exploit the aircrafts.

IAG buys AAA insurance

AAA, in its press release in August 2013, stated that Do Thi Kim Lien transferred all of her AAA stakes, accounting for 30 percent of the total stakes, to IAG, a well known Australian insurance group.

With the deal, Justin Paul Breheny from IAG has taken the post of President of AAA to replace Lien. The key members of AAA’s leadership are all foreigners.

The purchase has helped IAG raise its ownership ratio in AAA from 30 percent to 60.9 percent, officially turning AAA into a subsidiary of IAG in Vietnam.

IAG joined AAA in June 2012 after buying 30 percent of the stakes issued additionally by the insurer at $20 million.

Thai billionaire buys retail chain in the north

In late June 2013, Charoen Sirivadhanabhakdi, a Thai billionaire, wrapped up the deal of purchasing Family Mart, a retail chain.

The deal was made through Thai Corporation International (TCI), a joint venture with the capital contribution by Berli Jucker Plc (BJC) of the billionaire, and Mongkol Group.

Opinions from the well informed circle said Family Mart, the Japanese brand, would leave Vietnam soon. The rumor seems to turn into reality when a lot of Family Marts in HCM City have changed their names into B’s mart (B is the first letter in BJC).

TCI hopes B’s mart would bring the turnover of baht5 billion, or VND3.3 trillion in the next five years. Over 70 percent of the products available at the shops would be sourced from Thailand, while the remaining from Vietnam.

In early 2013, BJC spent $32 million (VND670 billion) to buy 65 percent of stakes of Thai An, a retailer in the north.

The Thai billionaire has successfully bought Japanese chain Oishi, while he is believed to take actions to acquire Melia Hotel Hanoi.

The noisiest commercial affairs in 2013