Vietnam Travel and Marketing Transports JSC (Vietravel) has completed a private placement of 6 million shares to swap a debt of VND168 billion ($7.12 million) from property developer Hung Thinh Corporation.
The transaction makes Hung Thinh a major shareholder in Vietravel, registered on the unlisted public company market UPCoM as VTR, with a 20.5% stake.
The price for each share is VND28,000 ($1.19), and the shares are subject to trading restrictions for one year. The end date of the issuance is February 7, 2023, and shares are expected to be delivered in the first quarter of 2023.
Previously, Vietravel's debt borrowed from Hung Thinh, a major real estate developer in Ho Chi Minh City, had a term of six months, with an interest rate of 11.5% per year.
In addition, Vietravel also privately offered 6 million shares at the asking price of VND12,000 ($0.51) per share. The total proceeds from the offering was VND72 billion ($3.05 million).
Vietravel currently has 17,294,833 shares. After the private placement, the company's charter capital increased to 29,294,833 shares.
Vietravel's chairman Nguyen Quoc Ky, board members Vo Quang Le Kha and Nguyen Thi Le Huong, chief financial officer Do Thanh Hung, general director Tran Doan The Duy, deputy general director Huynh Phan Phuong Hoang, and deputy general director Nguyen Ha Trung bought VTR shares in this private placement.
Nguyen Quoc Ky recently announced that he has completed buying more than 2.9 million VTR shares on February 6 in the private placement and became a major shareholder of Vietravel with a 11.18% stake.
The VTR stock is currently subject to restricted trading, meaning it can only be traded every Friday because the company has negative equity.
In December, Vietravel said that its largest shareholder Vietravel Corporation had transferred 1.78 million shares to investment management firm VinaCapital. The transaction makes VinaCapital a major shareholder in Vietravel with a 10.3% stake.
VinaCapital spent more than VND42.7 billion ($1.81 million) on the acquisition. Following the transaction, Vietravel Corporation now owns about 5.26 million VTR shares, equivalent to 30.38% of Vietravel.
Vietravel recently announced the transfer of more than 39 million shares, equivalent to a 30.22% stake the company was holding in Vietravel Airlines, to Vietravel Corporation as part of the company's restructuring plans.
The number of shares now owned by Vietravel in Vietravel Airlines has dropped to 17.8 million, equal to 13.7% of Vietravel Airlines' charter capital. Meanwhile, Vietravel Corporation has increased its ownership in Vietravel Airlines to 85.8%, becoming the latter's largest shareholder.
Also as part of this restructuring, Vietravel has sold off its stakes in World Transportation Services JSC and Cultural Development & Import-Export JSC to Vietravel Corporation.
Vietravel keeps its shares in companies directly related to tourism, including Viet Bees Events & Media JSC, Vietravel Hue One Member Limited Company, Tripu Travel Service Limited Liability Company, and a number of travel firms operating in the U.S, Australia, France, Singapore, Cambodia, and Thailand.
Vietravel Airlines is the fifth commercial airline in Vietnam. It launched its first commercial flight in January 2021, linking Ho Chi Minh City with Hanoi. It also flies on several international routes, connecting South Korea, Taiwan, Thailand, and Singapore.
The passenger carrier has a fleet of three A321 aircraft, which would be doubled next year, its CEO Vu Duc Bien said, adding that the fleet expansion would also serve its cargo transport service.