Wednesday, September 28, 2022

EasyJet reports 93 percent stake in $1.6 billion rights issue

London-British airline EasyJet said its investors have bought 93 percent of new shares in its 1.2 billion pounds ($1.64 billion) rights issue, which is designed to help it recover from the pandemic.

The airline announced the cash call earlier this month, its second during the 18 months of the COVID-19 outbreak, while also revealing that it has approached the acquisition of an unnamed mover believed to be low-cost rival Wizz Air. was rejected.

EasyJet’s chief executive, Johan Lundgren, said the additional funding will enable it to take advantage of new opportunities arising as carriers such as IAG, owner of British Airways, Air France-KLM and Lufthansa Retreats, said.

EasyJet-1
EasyJet check-in counters are pictured at Cointrin Airport during the CCP virus outbreak on May 28, 2020 in Geneva, Switzerland. (Dennis Balibus/Reuters)

“The success of this capital raising, thanks to the great support from investors, will enable EasyJet to strengthen its balance sheet and accelerate its post-COVID-19 recovery plan,” he said in a statement on Tuesday. “

The family of founder Stelios Haji-Ionou, the airline’s largest shareholder, decided not to participate in the rights issue, and their stake will drop from 25 percent to about 15 percent when the shares go live at 0800 GMT on Tuesday.

The founder has clashed with the management over its development plans in the past.

Shares of EasyJet fell 3 percent to 686 pence in opening deals after underwriting banks including Credit Suisse, BNP Paribas and Goldman Sachs said they would sell the remaining 21 million shares through an accelerated book build. They closed the book at 0655 GMT saying it was oversubscribed at 690 pence.

($1 = 0.7311 pounds)

by Sarah Young

Reuters

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This News Originally From – The Epoch Times

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