Bamboo Airways, a subsidiary of Vietnamese private firm FLC, has found a new investor to replace former FLC chairman Trinh Van Quyet and other shareholders, according to CEO Nguyen Manh Quan.
Over the past year, in order to maintain and develop operations, Bamboo Airways has been looking for new investors who can provide the airline with financial resources and restructuring experience, he said in an interview with the government portal.
“The airline has actively helped the investor with relevant procedures for stake acquisition, which is put under authorities’ supervision in line with the law,” he said, adding that the name of the new investor will be disclosed in the near future.
The transferred stake was mortgaged from 2020 by previous shareholders, he said.
The new investor has also agreed to take responsibility for all payments for previous loans taken out by previous shareholders who used their stakes in Bamboo Airways as collateral.
The new investor has also promised to help Trinh Van Quyet with a separate amount which will be transferred to his blocked account. Trinh Van Quyet, chairman of both FLC Group, one of Vietnam's leading real estate developers, and Bamboo Airways, was arrested on March 29 on charges of “manipulating” and “concealing information in securities activities” and his assets have been frozen.
Previously, real estate developer Him Lam Group lent Bamboo Airways VND8 trillion ($339.12 million). According to Quan, Bamboo Airways is focusing on developing three core strengths and distinctive products and services in order to bring many new choices to the market.
"Our domestic flight network has fully recovered towards a 30% market share in the near future. In late April, Bamboo Airways plans to operate a direct route from Ca Mau to Hanoi, completing its domestic flight network connecting all 22 airports in Vietnam," he said.
For the international market, after Vietnam reopened its borders post-pandemic in March 2022, the airline launched regular routes to destinations in Europe and Australia, he added.
Earlier, the FLC board of directors approved a resolution on using nearly 155 million Bamboo Airways shares to ensure its financial obligations at the Orient Commercial Joint Stock Bank’s Thang Long branch (OCB Thang Long).
It also agreed to continue using assets owned by FLC to secure Bamboo Airways' financial obligations at the bank.
Bamboo Airways was established by FLC in late May 2017 with an initial charter capital of VND700 billion ($29.6 million).
Trinh Van Quyet poured over VND2.8 trillion ($118.4 million) into the airline, or a 40.03% stake, while other shareholders injected more than VND610 billion ($25.8 million), an 8.73% share.
In April 2022, FLC became the airline’s largest shareholder, with capital contribution totaling over VND3.58 trillion ($151.4 million), or a 51.24% stake in the carrier. In its recent financial statement, FLC’s ownership in Bamboo Airways fell to 21.7% of its total charter capital of VND18.5 trillion ($782.3 million).