Deals
VietJet Gets Shareholders Nod to Raise Foreign Ownership Cap
- Shareholders approved lifting government cap to 49% from 30%
- Prime minister must give final approval to raise investor cap
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VietJet Aviation Joint Stock Co., which controls almost half of Vietnam’s domestic airline market after first taking flight six years ago, received shareholder approval to increase foreign ownership to meet investor demand in the nation’s soaring travel industry.
Shareholders meeting in Ho Chi Minh City agreed to raise the cap on foreign ownership to 49 percent from 30 percent as the budget carrier forecasts 2017 profit to rise 36 percent from $110 million (2.5 trillion dong) in 2016, the company said. Carrier’s higher foreign ownership now needs the approval of Prime Minister Nguyen Xuan Phuc because aviation is considered a restricted industry with a 30 percent foreign ownership cap.