Real estate developer Him Lam buys into airport ground services firm

Vietnamese real estate developer Him Lam bought 2.6 million SGN shares in Saigon Ground Services JSC (SAGS) on June 1 to take a 7.6% stake.

The deal makes Him Lam a major shareholder in the airport ground service company, listed on the Ho Chi Minh Stock Exchange (HoSE) as SGN.

The volume of SGN shares that Him Lam purchased was exactly the same as the volume Invesment Mining Port JSC (IMP Corp) previously owned, which could point to an agreement between the two firms.

Apart from IMP Corp, at the end of Q1/2023, SGN had three major shareholders: ACV (48.03%), SSI (7.61%), and Vietjet Air (9.11%). The remaining 17.46% of SGN shares were held by retail shareholders, besides a negligible amount of treasury shares.

Him Lam has been associated with Vietnamese carrier Bamboo Airways, although it does not directly hold shares. Him Lam granted a loan of VND8 trillion ($340.68 million) to Bamboo Airways and Him Lam chairman Duong Cong Minh is acting as a senior advisor for the airlines' board of directors from August 2022.

Operating at Tan Son Nhat, Danang and Cam Ranh international airports, Saigon Ground Services JSC provides aviation services including check-ins, baggage, aircraft parking, training, equipment maintenance and repairs, and information technology.

In the first quarter of this year, the firm recorded net revenue of VND329 billion ($14 million), up nearly 2 times year-on-year, and post-tax profit of VND56 billion ($2.38 million), up 98%.

Saigon Ground Services JSC said the pandemic had been controlled, helping airlines to recover, especially domestic flights which rose sharply in January and February, before gradually falling and stabilizing.

On the HoSE, SGN shares finished at VND73,500 ($3.13) at Friday's close.