On December 24, 2024, as part of the transfer of Qazaq Air JSC into a competitive environment, Samruk-Kazyna JSC, an US$ 81 billion (as at the end of 2023) sovereign wealth fund of Kazakhstan (the Fund) signed a package of binding transactional documents, with a consortium comprising Central Asia Aviation Holdings Limited (a subsidiary of the Vietnamese conglomerate Sovico Group JSC) and private company Kazasia Holdings Limited, including a Sale and Purchase Agreement. The signing is completed in the framework of implementation of the Decree of the Government of the Republic of Kazakhstan “On Certain Issues of Privatization for 2021–2025” dated December 29, 2020, No. 908, and in full compliance with the decisions of the State Commission on Economic Modernization (dated December 20, 2024) and the Fund’s Board of Directors (dated December 24, 2024). The Sale and Purchase Agreement officially came into effect on December 27, 2024, following the adoption of the Decree of the Government of the Republic of Kazakhstan, “On Certain Issues of the Transfer of the Shares of QAZAQ AIR JSC to a Competitive Environment” No. 1130.
Once all agreed condition precedents are met, the ownership of the shares will be transferred to the investors and the transaction will be closed.
The primary goal of this transaction is to advance the domestic civil aviation market by increasing competition, expanding international flight routes to and from Kazakhstan, creating new job positions, and many other related goals. The deal is expected to have a positive impact on related sectors such as logistics, trade, tourism, and more.
About the Company
Founded in 2015, Qazaq Air is currently a regional airline specializing in domestic flights, including routes to remote areas of the country. The airline’s fleet consists of five Bombardier Dash 8-Q400 turboprop aircrafts capable of operating routes up to 1,000 kilometers. By the end of 2024, Qazaq Air successfully transported over 600,000 passengers, generating approximately 21 billion tenge in annual revenue and achieving an EBITDA of over 2 billion tenge. To ensure the airline’s continued development, to strengthen the aviation industry, and to enhance competition in the market, it was determined that Qazaq Air would benefit from private sector involvement and investments.
The buyer was selected through a competitive tender process, which included two open two-stage bidding tenders that ended without a winner. Afterwards Sovico Group JSC’s proposal was selected as the most attractive, with the highest investment offering and the airline’s long-term growth and development plan.
About Sovico Group JSC and Kazasia Holdings Limited
Sovico Group JSC is one of the largest investment conglomerates in Vietnam, with expertise in aviation, banking, finance services, real estate, innovation and renewable energy. The group, along with its affiliates, is a major shareholder of VietJet Air, one of the most prominent and successful new age carriers in Southeast Asia. VietJet’s proven track record underscores Sovico Group JSC`s ability to grow airlines, expand fleets, and enhance route networks. The group’s financial capacity and reputation as a reliable partner make it an ideal choice for advancing Kazakhstan’s long-term strategic goals in the aviation sector.
Kazasia Holdings Limited, a wholly Kazakhstani entity, has been nominated by Sovico Group JSC to establish a partnership and jointly lead the management of Qazaq Air in collaboration with the Fund. The inclusion of Kazasia in this structure ensures effective national control over Qazaq Air and full compliance with the Law of the Republic of Kazakhstan dated July 15, 2010, “On the Use of Airspace of the Republic of Kazakhstan and Aviation Activity”.
Key investment conditions
Under the terms of the Sale and Purchase Agreement, the investors will contribute to the strategic transformation and development of Qazaq Air, focusing on enhancing operational efficiency and long-term sustainability. Sovico Group JSC, as a strategic investor, is committed to supporting the airline’s growth through substantial investments and expertise. The investment conditions include plans to expand Qazaq Air’s fleet with 20 Boeing 737 Max or Airbus A321 aircraft over the next several years, leveraging VietJet’s franchise model and technical know-how to enhance competitiveness and service quality. The transaction is expected to significantly enhance Qazaq Air’s asset value and market position, solidifying its status as a leading airline in Central Asia.
The Fund and Sovico Group JSC will collaborate to ensure effective management of Qazaq Air during the transition phase. The Sale and Purchase Agreement includes provisions for a potential future divestment by the Fund. Over the next five years, an Option Agreement allows the Fund to sell its remaining 49% stake in Qazaq Air to a local investor or a consortium that meets strict national ownership, independence, and reputation criteria.
Nurlan Zhakupov, Chairman of the Management Board of Samruk-Kazyna JSC: “We are pleased to announce the successful signing of the transaction documents in this significant deal, marking an important milestone for the aviation industry in Kazakhstan. The process was conducted in an open and transparent manner, ensuring the best outcomes for all stakeholders. This transaction reflects our shared commitment to fostering growth and development in the sector, with Sovico Group bringing both substantial investments and valuable expertise. Despite the complexity of the negotiations, we managed to find common ground and are optimistic about the positive impact of this partnership on QAZAQ AIR and the broader industry.”
Dr. Nguyen Thanh Hung, Founding Chairman of Sovico Group JSC: “ We are proud to establish a strong presence in Kazakhstan and contribute to the country’s aviation development. Sovico Group, with global vision is dedicated to providing the resources and expertise necessary to strengthen Qazaq Air, enabling it to achieve its strategic objectives. We deeply appreciate the trust and partnership extended by the President and Government of Kazakhstan in this important collaboration.”