13th Sep 2021 14:56
(Alliance News) - Shares in easyJet PLC were steady on Monday, as the new shares issued as part of the budget airline's GBP1.2 billion rights issue started trading.
easyJet shares were trading at 572.20p on Monday afternoon in London, down 16% from their 680.80p closing price on Friday, but the stock price was flat when accounting for the dilution from the rights issue, which implied a closing price on Friday of 573.17p, according to the company's website.
The carrier turned to the cash raise as it looks to bolster its "long-term positioning" in the European airline market.
The rights offer, which saw shareholders offered 31 new shares for every 47 existing shares already owned, was announced on Thursday last week, sending the stock down 12% that day, as the company also said it had rejected an takeover offer. The rights issue was priced at 410 pence per share.
"As part of a review of its capital structure, the board has concluded that raising additional equity will protect and strengthen easyJet's long-term positioning in the European aviation sector," the company had said on Thursday.
The new shares were admitted to trading on Monday. According to a timetable filed by the company on Thursday, shareholder now have until September 27, two weeks from now, to commit to the rights issue.
easyJet said last week it recently rejected an unsolicited preliminary takeover approach. The unnamed bidder has since confirmed it is no longer considering a deal, easyJet said at the time. The Financial Times later reported that the bidder was Wizz Air Holdings PLC.
By Eric Cunha; [email protected]
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