Bamboo Airways rejects rumors on shares sold to Chinese investors

Bamboo Airways, the aviation arm of FLC Group, has rejected rumors saying that it has sold a 49% stake to Chinese investors.

Photo: Bamboo Airways

Bamboo Airways said in a post on its website on April 14 that the news going viral on Facebook these days has been shared from an unverified source. The carrier stated that it has no Chinese shareholders.

The legal department of the airline has submitted evidence supporting its position to the competent agencies to help the airline address the fake news.

Also, the website spreading the information has been identified on Vietnam’s mainstream media as a source of fake and anti-State news, the announcement wrote. 

Earlier, FLC Group stated in its 2019 financial report that its current ownership in Bamboo Airways is now 51.1%. However, both FLC and Bamboo Airways have not released official information on the shareholders of the remaining 48.9% stake of the air carrier.

FLC Group’s consolidated financial statement for the fourth quarter of 2019 showed that its ownership in Tre Viet Aviation Joint Stock Company, which operates Bamboo Airways, on December 31, 2019 was 51.11%, down from 100% in the third quarter of 2019.

FLC increased its paid capital in Bamboo Airways from VND1.3 trillion (US$55.37 million) at the end of the third quarter to VND2.07 trillion (US$88.17 million) at the end of the fourth quarter.

Meanwhile, the airline also continuously increased its capital, from VND1.3 trillion to VND 2.2 trillion and then VND4.05 trillion (US$172.5 million) currently. Therefore, the decrease of FLC Group’s share at Bamboo Airways is due to dilution of ownership during the company’s capital increase, according to Kinh te & Tieu dung.