Vietjet to sell 17.7 mln treasury shares
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The board of budget carrier Vietjet has approved a proposal to sell 17.7 million treasury shares equivalent to 3.28 percent of its charter capital.
It would help fund expansion and preparations for recovery after the pandemic this year, the airline said.
Vietjet’s VJC shares closed at VND136,000 ($5.89) on March 8, and at this price the carrier will earn over VND2.4 trillion from the deal.
It plans to complete the transaction in the first half of this year.
Vietjet had bought the shares in August 2019 for VND132,063 each. In June 2020, the carrier announced it was seeking to sell them to a strategic investor.
Vietjet was among the few airlines to make a profit and not fire any employee amid the Covid-19 pandemic last year. It recorded a consolidated after-tax profit of VND70 billion in 2020.
Questions & Answers
Q.What percentage of its charter capital do these 17.7 million treasury shares represent for Vietjet?
What percentage of its charter capital do these 17.7 million treasury shares represent for Vietjet?
The 17.7 million treasury shares that Vietjet plans to sell are equivalent to 3.28 percent of the budget carrier's charter capital. This sale is intended to fund expansion and support post-pandemic recovery efforts.
Q.What is the primary reason Vietjet is selling these treasury shares?
What is the primary reason Vietjet is selling these treasury shares?
Vietjet stated that the sale of these shares would help to fund expansion plans and assist with preparations for recovery after the pandemic this year. It aims to strengthen its financial position for future growth.
Q.How much profit did Vietjet report after tax in 2020?
How much profit did Vietjet report after tax in 2020?
Vietjet recorded a consolidated after-tax profit of VND70 billion in 2020. This indicates the airline's financial resilience, as it was one of the few carriers to make a profit during the Covid-19 pandemic last year.
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