FLC Group to sell Bamboo Airways stake

FLC will sell its stake in Bamboo Airways during the group's restructuring process, chairman Le Ba Nguyen said at an extraordinary meeting on Saturday.

Nguyen said that in the period of 2020-2022, FLC Group was seriously affected by a series of factors like the Covid-19 pandemic, global economic downturn and especially legal issues related to its senior leaders.

He added that in 2023, the group plans to reshape its core business areas, focusing on three pillars: real estate, resorts and M&A projects to restructure loans and maintain business operations.

The chairman noted that in the coming time, the company will review and re-evaluate all investments in subsidiaries and associates to define plans on continued investments or transfers.

"FLC is working with leading financial consultants to ensure maximum efficiency and benefits for the group as well as shareholders," he said.

FLC plans to transfer Bamboo Airways (BAV) shares.

"However, after being authorized by the general meeting of shareholders, we also need to develop a specific assessment plan by financial experts, then we can come up with a specific plan," he added.

According to Nguyen, FLC has invested VND4,015 billion ($169.23 million) in Bamboo Airways, equivalent to 21.7% of the airline's charter capital. In the latest quarterly financial report published in October last year, FLC still recognized Bamboo Airways as an associate company.

He said that the airline could not be profitable, so FLC in 2021 had to make a provision for an investment of over VND373 billion ($15.72 million) and sharply increased the provision to VND3,642 billion ($153.51 million) in 2022.

On February 24, the Hanoi Stock Exchange (HNX) approved the registration of FLC Group on the UPCoM, but included it on a list suspended from trading.

It explained that the suspension of FLC shares from trading from March 3 is in line with the regulations on registration and management of securities trading of unlisted companies issued on November 16, 2022, by the Vietnam Stock Exchange's council of members.

Within 15 working days from the date of suspension, FLC Group must send a written document to the HNX explaining the cause and offering a plan to fix the situation.

Earlier on February 14, FLC received the Ho Chi Minh Stock Exchange’s (HoSE) decision to delist its nearly 710 million shares from February 20 for "serious violations of information disclosure obligations".

In a related development, FLC Group on Monday announced it had received the applications for resignation from a number of senior leaders, including Bui Hai Huyen, board member, CEO and legal representative; Dam Ngoc Bich, standing deputy CEO; and Le Thi Truc Quynh, deputy CEO.

On March 29, 2022, FLC chairman Trinh Van Quyet was arrested on charges of "market manipulation" and "concealing information regarding securities activities".

Before Quyet was arrested, FLC Group was known as one of Vietnam's leading property developers with projects and investment proposals across the country.