QazaqAir, acquired by Vietnamese group, is set to be renamed

QazaqAir, previously owned by the Samruk-Kazyna National Welfare Fund and sold to the Vietnamese Sovico Group last year, will now be rebranded as Vietjet Qazaqstan. The agreement was signed during the Kazakhstan-Vietnam business panel held in Astana, as reported by inform.kz. Sovico Group’s portfolio includes the Vietnamese airline Vietjet.

Nurlan Zhakupov, CEO of Samruk-Kazyna, stated during the forum that the QazaqAir sale deal has been completed and financially resolved, with all suspensive conditions fulfilled.

«We highly appreciate the intentions of Sovico Group and VietJet Air to participate in QazaqAir’s management and operations under the new brand, Vietjet Qazaqstan,» Zhakupov noted.

He also said that the Kazakhstani authorities hope this deal will positively contribute to the development of bilateral relations and business projects with Vietnam’s participation.

QazaqAir was listed for sale in 2023 as part of the state privatization plan. However, several bidding rounds failed as no contenders met all the required conditions. One of the mandatory requirements was the redemption of the airline’s debt, which stood at roughly $73.5 million, owed to Samruk-Kazyna.

Under the terms of the bidding rounds, a foreign investor could acquire up to 49% of QazaqAir’s shares, whereas a Kazakhstani investor could buy the full 100%. As a result, Central Asia Aviation Holdings Limited — a subsidiary of Sovico Group — acquired 49%, while Kazasia Holdings Limited, a company registered with the Astana International Financial Centre and owned by Tahir Pham, obtained an additional 2%, as Samruk-Kazyna explained to Kursiv.media. The deal amounted to approximately $3.9 million, excluding the airline’s debt (around $73.5 million), which must be repaid over several years. In addition, Sovico Group has pledged to acquire 20 Boeing 737 MAX or Airbus A321 aircraft and to make regular investments in the airline’s development.