National Bank wants to sell 203 million Bamboo Airways shares

National Citizen Bank (NCB) has just announced a Resolution on collecting shareholders' opinions in writing, approving the plan to transfer 203 million shares of Bamboo Airways Company (BAV).

Specifically, NCB will transfer 203 million BAV shares, with the transfer price equal to the total principal and interest debt obligations that NCB has offset plus interest accrued from the time of offset to the time the buyer makes payment with interest equal to the average VND deposit interest rate of economic organizations and individuals calculated on the offset principal debt.

Payment term is as agreed and decided by the Board of Directors (BOD) of NCB Bank.

Currently, Bamboo Airways has a charter capital of VND18,500 billion, equivalent to 1.85 billion shares. Therefore, the number of shares held by NCB is equivalent to 11% of the current capital of this airline.

It is known that the number of Bamboo Airways shares originated as part of the collateral for loans at NCB. In the middle of last year, NCB's Board of Directors issued two resolutions on handling these collateral assets.

Not only borrowing capital from NCB, previously, former chairman of FLC Group Trinh Van Quyet and other shareholders also used Bamboo Airways shares as collateral for loans at many other banks such as Sacombank and OCB .

The extraordinary shareholders' meeting on April 10 of Bamboo Airways JSC did not approve the plan to issue shares to increase capital to convert Bamboo Airways' debt.

*National Bank wants to sell 203 million shares of Bamboo Airways. (Photo: BAV)*

According to the original plan, Bamboo Airways will issue 772 million shares to convert debts into shares according to the agreement between creditors and the company. At the same time, Bamboo Airways will issue 185 million shares to new investors. The expected issuance price is also 10,000 VND/share. The total number of shares expected to be issued is 957 million units, equal to 51.7% of the current number of shares.

However, the General Meeting of Shareholders did not approve both of these capital increase plans. Specifically, 56.4% of Bamboo Airways shareholders did not agree to offer individual shares to increase charter capital by an additional VND9,570 billion.

However, a representative of Bamboo Airways said that this result has not yet affected the airline's business operations.

According to shareholders, more time is needed to supplement information and complete the most feasible capital increase plan for Bamboo Airways. Once completed, the capital increase plan will be submitted to the General Meeting of Shareholders for approval at the nearest meeting.

Bamboo Airways said it will hold its second extraordinary general meeting of shareholders on May 9.

Bamboo Airways nearly breaks even, accounts for 18% of domestic market share

At the shareholders' meeting on April 10, Bamboo Airways said that the airline is close to breaking even in its core business and accounts for 18% of the domestic market share.

Currently, Bamboo Airways operates more than 40 domestic routes, connecting 22/22 airports in Vietnam. The international flight network has also been expanded with 14 direct international routes, connecting many gateway airports in Asia, Australia, Europe, etc. Bamboo Airways aims to increase its fleet size to 65 aircraft by 2025.

In addition to its core business, Bamboo Airways is promoting the construction of a supporting ecosystem for aviation, expanding businesses in areas such as ground services, technical infrastructure, catering, cargo transportation, etc.

On March 17, FLC Group approved the policy of continuing to use its assets including nearly 155 million Bamboo Airways shares and the FLC Quang Binh Golf Links golf course project to ensure Bamboo Airways' financial obligations at Orient Commercial Joint Stock Bank (OCB).

On March 16, Bamboo Airways announced that it had found a new investor to replace the group related to former FLC Chairman Trinh Van Quyet. The new investor has agreed to inherit and take responsibility for the obligations to pay principal and interest on previous loans. The old shareholders have used the airline's shares as collateral at banks.

According to Bamboo Airways General Director Nguyen Manh Quan, during difficult times, Him Lam JSC (owned by Mr. Duong Cong Minh) lent Bamboo Airways 8,000 billion VND.

Bamboo Airways aims for 30% domestic market share and opens more international routes.

Bamboo Airways is close to breaking even, has not issued capital increase . Preliminary information at the General Meeting of Shareholders on April 10 shows that Bamboo Airways Joint Stock Company (BAV) is close to breaking even in its core business segment, currently accounting for 18% of the domestic market share.

Source