Illustrative image (Photo: VNA) Hanoi (VNA) - At the general meeting of shareholders held on July 14, VietnamAirlines Corporation (HVN) approved a plan of raising its capital by 8 trillionVND (around 349 million USD) through share issuance, with an issuance rate of56.4 percent.
These sharesare common stocks and shareholders can transfer them freely. Accordingly,existing shareholders can transfer their stock purchase rights to localindividual or institutional investors. The right can only be transferred once duringthe given period. And subsidiaries are forbidden to buy shares or investin the holding company.
Issuanceprocedures are expected to be completed in the second half of 2021, said TranThanh Hien, Chief Accountant of Vietnam Airlines.
With thecurrent progress, funds raised from the issuance will arrive in the thirdquarter to maintain business activities.
The nationalflag carrier also prioritises disbursing the refinancing loans worth 4trillion VND to pay for part of its outstanding debts, due debts, as wellas current liabilities and long-term liabilities.
In 2021, dueto the complexity of COVID-19, Vietnam Airlines set a target of nearly 37.36trillion VND in consolidated revenue, equivalent to 88.4 percent of that oflast year.
Le Hong Ha,General Director of Vietnam Airlines, said that to achieve this target, the aircarrier will focus on operating flights safely, as well as preventing thepandemic. At the same time, it will carry out inclusive restructuring anddigital transformation.
The companyalso seeks support from its counterparts to reduce prices, delay payment,and cut costs to minimise losses in business results. It expects to save morethan 6.8 trillion VND in 2021 through these strategies.
At themeeting, the representative from Vietnam Airlines said that the carrier isreviewing its external investments, including divestment in someportfolios to have more capital for its own businesses.
This year,the carrier plans to sell six old ATR-72 aircraft and replace themwith jet planes to strengthen competitiveness in niche markets.
Last year,it recorded consolidated revenue of nearly 42.3 trillion VND, surpassing itsexpectations. The consolidated losses were also lower than its origin plan.
On the stockmarket, HVN shares has kept falling since the beginning of April. The sharesclosed July 14 at 25,000 VND per share, up 0.59 percent, but they had lostnearly 24 percent since April and 10 percent compared to earlier this year./.
These sharesare common stocks and shareholders can transfer them freely. Accordingly,existing shareholders can transfer their stock purchase rights to localindividual or institutional investors. The right can only be transferred once duringthe given period. And subsidiaries are forbidden to buy shares or investin the holding company.
Issuanceprocedures are expected to be completed in the second half of 2021, said TranThanh Hien, Chief Accountant of Vietnam Airlines.
With thecurrent progress, funds raised from the issuance will arrive in the thirdquarter to maintain business activities.
The nationalflag carrier also prioritises disbursing the refinancing loans worth 4trillion VND to pay for part of its outstanding debts, due debts, as wellas current liabilities and long-term liabilities.
In 2021, dueto the complexity of COVID-19, Vietnam Airlines set a target of nearly 37.36trillion VND in consolidated revenue, equivalent to 88.4 percent of that oflast year.
Le Hong Ha,General Director of Vietnam Airlines, said that to achieve this target, the aircarrier will focus on operating flights safely, as well as preventing thepandemic. At the same time, it will carry out inclusive restructuring anddigital transformation.
The companyalso seeks support from its counterparts to reduce prices, delay payment,and cut costs to minimise losses in business results. It expects to save morethan 6.8 trillion VND in 2021 through these strategies.
At themeeting, the representative from Vietnam Airlines said that the carrier isreviewing its external investments, including divestment in someportfolios to have more capital for its own businesses.
This year,the carrier plans to sell six old ATR-72 aircraft and replace themwith jet planes to strengthen competitiveness in niche markets.
Last year,it recorded consolidated revenue of nearly 42.3 trillion VND, surpassing itsexpectations. The consolidated losses were also lower than its origin plan.
On the stockmarket, HVN shares has kept falling since the beginning of April. The sharesclosed July 14 at 25,000 VND per share, up 0.59 percent, but they had lostnearly 24 percent since April and 10 percent compared to earlier this year./.
VNA
