Temasek keen on stake in Vietnam carrier
SINGAPORE - State investment firm Temasek Holdings Pte Ltd is in talks to buy a stake in Vietnam's state-owned Pacific Airlines, which narrowly avoided collapse last year.
Quoting an unnamed finance ministry official, Vietnam's Saigon Times reported on Wednesday that Temasek could spend as much as US$50mil for a stake in Pacific Airlines.
“We confirm we are in discussion with the Vietnamese Ministry of Finance for a possible investment in Pacific Airlines,” a Temasek spokeswoman said.
The Finance Ministry, which plans to sell a stake in Vietnam's second largest carrier to foreign investors as part of a restructuring plan, declined to comment on Temasek's interest, as did Pacific Airlines.
Last December, the carrier escaped closure after racking up debts of up to US$13.7milillion. The government ordered its parent, Vietnam Airlines, to either raise new funds for the airline through a share issue or shut it down.
Reuters - May 13, 2005.
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