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HANOI: Vietnam Airlines JSC has approved a plan to raise 8 trillion VN (US $ 346.2 million or RM 1.5 billion) through the issuance of shares.

The emission rate is 56.4%.

These shares are ordinary shares and shareholders can freely transfer them. Thus, existing shareholders can transfer their share purchase rights to local individual or institutional investors.

The right can only be transferred once during the given period. And subsidiaries are prohibited from buying shares or investing in the holding company.

Issuance procedures are expected to be completed in the second half of 2021, Vietnam Airlines chief accountant Tran Thanh Hien said.

With current progress, funds raised from the show will arrive in the third quarter to maintain business activities.

The national airline is also prioritizing the disbursement of refinancing loans worth 4 trillion yen (RM733 million) to pay off part of its outstanding debts, debts owing as well as current liabilities and debts. long-term liabilities.

General Manager Le Hong Ha said that to achieve this goal, the carrier will focus on operating flights safely as well as pandemic prevention.

At the same time, it will undertake inclusive restructuring and digital transformation, he said.

The company is also seeking the support of its counterparts to reduce prices, delay payments and reduce costs to minimize loss of business results.

Representatives from Vietnam Airlines said the carrier was reviewing its external investments, including divesting some portfolios, in order to have more capital for its own businesses.

This year, the carrier plans to sell six old ATR-72s and replace them with jets in order to strengthen its competitiveness in niche markets. – Viet Nam News / ANN