Kazakhstan’s sovereign wealth fund, Samruk-Kazyna, has disclosed that it sold a majority share in regional operator Qazaq Air for 1.02 billion tenge ($2 million).
The fund revealed the figure in financial results for the third quarter ending 30 September.
Samruk-Kazyna states that it completed the sale of a 49% share to Central Asia Aviation Holdings, plus a further 2% to an entity it identifies as Kazasia Holdings.
The sale closed on 6 May. Central Asia Aviation Holdings is linked to Sovico Group and Vietnamese budget carrier Vietjet.
“As a result of the transaction, control over Qazaq Air was lost,” it says. “But the fund retained significant influence.”
Samruk-Kazyna’s sale of the 51% share followed previous failed attempts to privatise Qazaq Air, which operates a fleet of De Havilland Dash 8-400 turboprops.
The buyer rebranded the operation as Vietjet Qazaqstan and has opened several routes since the acquisition.
Under the terms of the sale agreement, Sovico Group is to support an expansion and modernisation of the fleet with jet aircraft.
Vietjet has agreements to take 100 Airbus A321neos and 200 Boeing 737 Max aircraft, and has previously indicated that it would place at least 20 737s with the Kazakh division.
Samruk-Kazyna has the option to sell its remaining 49% of the carrier, which was established in 2015, to investors.
