26.7 C
Ho Chi Minh City
Monday, June 24, 2024

Shareholders vote down Bamboo Airways capital increase plan

The Saigon Times

Must read

HCMC – Bamboo Airways’ extraordinary general meeting this morning did not approve the private airline’s plan to issue new shares via private placement to increase its charter capital to VND9,570 billion.

The meeting this morning, April 10, saw the participation of 93 shareholders holding over 1.73 billion shares, representing 93% of voting shares.

The meeting was called to seek the shareholders’ approval of the plan to increase the charter capital of Bamboo.

The carrier wanted to issue 772 million shares, with a total face value of VND7,720 billion, to restructure loans and conduct debt-for-equity swaps pursuant to lenders’ agreements with the company.

The face value is estimated at VND10,000 per share with a swap ratio of 1:1, which means every VND10,000 in debt would be swapped for one share to be issued.

Simultaneously, Bamboo Airways also wanted to issue an additional 185 million shares with a total value of VND1,850 billion to be offered to existing shareholders at a par value of VND10,000 per share.

Thus, Bamboo Airways wanted to issue 975 million new shares to increase its charter capital by VND9,570 billion. Once the issue is successful, the carrier’s shares will rise to 2.8 billion, equivalent to a charter capital of over VND28,000 billion.

However, according to the general meeting voting result announced at 11 a.m. today, over 979 million voting shares representing 56.42% of the total did not approve of the carrier’s plan on the capital charter increase, effectively killing Bamboo Airways’ capital hike plan.

More articles


Please enter your comment!
Please enter your name here

Latest articles