Bamboo Airways to raise $425M through rights issue
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Bamboo Airways plans to make a rights issue of shares to increase its capital by 54%, or nearly VND10 trillion (US$425.44 million), to fund operations and pay off debts.
It will offer 35 new shares for every 100 held and the issuance will be made this year.
It currently has a charter capital of VND18.5 trillion.
The proposal will be presented to shareholders at an extraordinary general meeting on Apr. 10.
The airline has said it has found a buyer to take it over.
Former chairman Trinh Van Quyet, arrested last year for alleged stock manipulation, owns a 55.5% stake in it.
The buyer, whose identity has not been revealed, has agreed to take over the entire debts and provide Quyet with the money he might have to pay as fines and indemnification for the stock manipulation that led to his arrest.
Questions & Answers
Q.What is the primary purpose of Bamboo Airways' planned rights issue?
What is the primary purpose of Bamboo Airways' planned rights issue?
The airline intends to use the funds raised from the rights issue to support its operations and settle existing debts.
Q.How much capital does Bamboo Airways currently have before the rights issue?
How much capital does Bamboo Airways currently have before the rights issue?
Bamboo Airways' current charter capital stands at VND18.5 trillion.
Q.What has the unnamed buyer agreed to do regarding the airline's former chairman?
What has the unnamed buyer agreed to do regarding the airline's former chairman?
The buyer has agreed to provide Trinh Van Quyet with the money he may need to pay as fines and indemnification related to the stock manipulation allegations.
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