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VIETNAM. Southern Airport Services Company (SASCO) – which operates 20 duty free stores at Tan Son Nhat International, among other airport service businesses – has become a publicly listed company for the first time.
Following SASCO’s listing on the Ho Chi Minh Stock Exchange, the government’s stake in the company has been reduced to 51%. Public investors hold a further 23.6% and staff hold a 1.8% stake.
The remaining 23.6% of capital was sold before the public offering to three “strategic investors” related to Imex Pan Pacific Group – Union Pacific Import and Export, Duy Anh Fashion and Cosmetics and Fashion and Cosmetics Europe.
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SASCO’s business includes 20 duty free stores at Tan Son Nhat AIrport |
Imex Pan Pacific is a diversified business group with interests in luxury goods and airport commercial revenues. In April last year subsidiary Vietnam Food & Beverage Services Company partnered with Autogrill to form a F&B joint venture at Vietnam’s airports.
SASCO’s floatation is the first step in the privatisation of parent group Airports Corporation of Vietnam. As reported, the privatisation is intended to help fund the construction of a new international hub, Long Thanh International Airport.
Depending on the result of a government study, construction of the new airport will begin in early 2016. The facility is planned to open with capacity for 25 million passengers by 2022. It will be located nearly 90km southwest of Tan Son Nhat International.
According to the Vietnamese state news agency, duty free shops represent around 40% of SASCO’s revenue and 30% of its gross profit. SASCO is forecast to make a pretax profit of VND182 billion (US$8.55 million) on revenue of VND2.04 trillion (US$95.88 million), up +48.7% and +1.1% on year, respectively.
Based on those numbers, SASCO’s retail operation is anticipated to generate revenue of US$38.35 million this year.
