Vietnam's Sovico Group buying Kazakhstan's Qazaq Air for $4 mln - minister

ASTANA. July 9 (Interfax) - Vietnam's Sovico Group will acquire Qazaq Air for approximately 2 billion tenge or $4.2 million by the end of September, Kazakh Transport Minister Marat Karabayev said.

"The deal is expected to be completed by the end of September. Samruk-Kazyna is overseeing the transaction, and the price is estimated to be around 2 billion tenge," Karabayev said at a government press conference.

Facilitated by Kazakhstan's sovereign wealth fund Samruk-Kazyna, this acquisition includes the settlement of Qazaq Air's 38 billion tenge debt. Sovico Group has committed to acquiring at least 20 aircraft for the airline, potentially scaling up to 50 Airbus and Boeing planes.

"The investor plans to introduce up to 50 aircraft. This move will position them as a major player in the market, especially considering SCAT and Air Astana each operate 54 aircraft. This is expected to influence competition and air ticket availability," he said.

In May of this year, Samruk-Kazyna announced the sale of its subsidiary airline Qazaq Air to Vietnam's Sovico Group. Sovico plans to acquire a minimum of 20 Airbus and Boeing aircraft for Qazaq Air within the next five years, potentially increasing to 50 aircraft. Foreign direct investment in the deal is expected to exceed $1 billion.

Qazaq Air, wholly owned by Samruk-Kazyna since its establishment in 2015, currently holds a 7% share of Kazakhstan's aviation market with a fleet comprising five Bombardier DHC-8-Q400NG aircraft.

Sovico Group is a diversified conglomerate in Vietnam operating in the energy, construction, banking, finance, and aviation sectors.