Vietravel to discuss private share sales at annual meeting

Update: June, 23/2020 - 08:00


A Vietravel office. The company plans to sell 4.33 million shares in a private deal to raise its capital to VNĐ170 billion. — Photo

HÀ NỘI — The Vietnam Travel and Marketing Transport JSC (Vietravel) will discuss a share issuance deal to raise charter capital to VNĐ170 billion (US$7.33 million) at its annual shareholder meeting.

The company will sell 4.33 million shares to the strategic investors in a private deal. The meeting will be held on June 27.

The selling price must not stay below Vietravel’s on-issuance date share price or the firm’s booking value recorded in the latest financial report.

The deal will be completed in the first half of 2021 and the mobilised capital will be spent on funding business activities.

Vietravel and shareholders will also discuss a plan to sell VNĐ200 billion worth of guaranteed unconvertible bonds in the third quarter of 2021.

Yield rate is set at 11 per cent per annum and the bonds will mature in three years.

The travel firm will also propose shareholders accept a no-dividend plan for 2019 and 2020. It has not revealed earnings targets for this year.

In 2019, Vietravel posted a 3 per cent annual increase in total revenue, which reached VNĐ7.43 trillion. But net profit fell 19.5 per cent on-year to VNĐ45 billion last year.

According to Vietravel, the tourism sector has been hit hard by COVID-19 in the past six months. In the first quarter of the year, Vietravel posted a loss of VNĐ40 billion.

Vietravel shares (UPCoM: VTR) dipped 2.3 per cent to end Monday at VNĐ38,100 apiece. — VNS