Phuong Nam Cultural Joint Stock Corporation has proposed a plan to shareholders to sell its remaining 7.5 per cent stake in CJ CGV Vietnam Co Ltd.

CJ CGV Vietnam operates Viet Nam’s largest multiplex cinema, CGV.

On Wednesday, Phuong Nam Cultural Corporation (PNC) sent a written notice to the General Meeting of Shareholders to consult them about the sale of its capital in CJ CGV Vietnam.

The decision to sell comes in the wake of financial distress faced by the corporation. PNC will announce consultation results on August 27, tinnhanhchungkhoan.vn reports.

As of June 31, PNC owned a 20 per cent stake in CGV. However, on June 28th, PNC shareholders approved the sale of 12.5 per cent ​​of CGV Vietnam shares to Black Diamond Investment Joint Stock Company, reducing Phuong Nam’s holding to 7.5 per cent.

The sales aim to help PNC pay off its debt. By the end of the second quarter of this year, PNC’s liabilities amounted to VND 548.7 billion, 93 per cent of its total capital, of which the short-term loans borrowed from Cross Junction Investment was VND161 billion.

PNC has suffered accumulated losses of more than VND98.3 billion. — VNS