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EasyJet reports 93% take-up of $1.6 billion rights issue By Reuters

by Mike Robinson

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© Reuters. FILE PHOTO – EasyJet planes were parked on the tarmac at the Berlin-Brandenburg Airport’s official opening (BER), “Willy Brandt”, October 31, 2020, in Schoenefeld, near Berlin. REUTERS/Hannibal Hanschke/Pool/File Photo

LONDON (Reuters) -British airline easyJet (LON:) said it had received acceptances from investors for 93% of the new shares it sold as part of a 1.2 billion pound ($1.64 billion) fully underwritten rights issue designed to help fund its recovery from the pandemic.

An airline spokesperson announced this cash call earlier in the month. This was the second within the COVID-19 18-month period.

EasyJet’s most significant shareholder is the Stelios-Haji-Ioannou family. They have decided to not participate in this rights issue. The stake they hold will be around 15% instead of 25%. Shares go live Tuesday, 0800 GMT.

In the past, the founder and management have clashed over growth plans.

Johan Lundgren (EasyJet’s chief executive) stated that additional funds would allow the company to seize new opportunities, as British Airways, Air France, and Lufthansa are retreated.

In a Tuesday statement, Johan Lundgren stated that easyJet’s capital raise will be able to boost its balance sheet and speed up its post-COVID 19 recovery plans thanks to the support of investors.

Underwriting banks for the issue will be trying to find subscribers for remaining 21 millions shares, which were not bought by shareholders in 31 for 47 rights issues. They will also try to get the stock if that fails.

($1 = 0.7311 pounds)

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