Bamboo Airways to issue nearly one billion shares

Friday, Mar 24, 2023 16:12

A Bamboo Airways aeroplane. It plans to increase charter capital through share issuance from VND18.5 trillion to VND28.5 trillion. — Photo courtesy of Bamboo Airways

Bamboo Airways has revealed plans to raise nearly VND10 trillion (US$424.1 million) by issuing 996.2 million shares.

The move, to be announced at an Extraordinary General Meeting of Shareholders held on April 10th, would raise the airline's charter capital from the current VND18.5 trillion to VND28.5 trillion.

The proposed share issuance is slated to take place this year, and there will be no restrictions on the transfer of the newly issued shares.

According to Bamboo Airways’ Nguyen Ngoc Trong, the share issuance is to continue their restructuring of organisation and debt and to have more capital for operation and development.

Nguyen Manh Quan, the airline’s General Director, said they had found a new investor to replace the old shareholders, former Chairman Trinh Van Quyet and other related shareholders.

Bamboo Airways is in the negotiation phase with a new investor. However, Quan did not reveal any further details.

It carries out the procedures for transferring shares from old shareholders to new investors.

In addition to paying the share purchase price, the new investor has also agreed to be responsible for the payment of principal and interest on previous loans used by the old shareholders.

At the same time, the new investor also supported former Chairman Trinh Van Quyet with a separate amount of money that will be paid into the trading account of Quyet blocked by the Investigation Police Agency.

Bamboo Airways has called for support from several large investors to help the company overcome the current crisis.

For example, Him Lam Joint Stock Company has lent Bamboo Airways VND8 trillion.

On March 17, FLC’s Board of Directors approved using its 155 million shares at Bamboo Airways to pay for loans at OCB’s Thang Long Branch.

Established on May 31, 2017, Bamboo Airways had an initial charter capital of VND700 billion, 100 per cent owned by FLC Group.

After that, the airline increased its charter capital to VND2.2 trillion, VND7 trillion and VND10.5 trillion and finally, VND18.5 trillion in September 2021. FLC also gradually reduced its ownership to 21.7 per cent. — VNS

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