12th Feb 2021 09:04
(Alliance News) - Jet2 PLC on Friday said it has tapped investors for GBP422 million through a share placing and subscription to bolster its finances in a "challenging" trading environment.
The Leeds-based leisure travel business said it raised the amount through the issue of 35.8 million placing shares and 593,561 subscription shares at 1,180 pence per share. Canaccord Genuity and Jefferies acted as joint global co-ordinators, bookrunners and brokers for the placing.
Shares in Jet2 were down 6.6% at 1,212.00 pence in London on Friday.
Executive Chair Philip Meeson subscribed for 47.3 million shares, resulting in him holding 22% of Jet2's issued share capital. A total of five other directors also subscribed for shares, with two owning a 0.1% stake each and the remaining three owning a less than 0.1% stake each.
"Based on the indicative scenario planning undertaken by management, the board believes that the proceeds will provide sufficient liquidity on an extended and likely unpredictable shutdown basis to deal with this continually challenging trading environment. Furthermore, the directors believe the fundraise will enable management to continue to adopt a decisive, but prudent, responsible financial management approach; take longer-term strategic decisions to support sustainable long term profit growth; and improve the ability for Jet2 to exit the pandemic in a stable commercial position," said Meeson.
Jet2 said the fundraise follows the UK government once again advising against non-essential travel.
Health Secretary Matt Hancock on Thursday said that the rollout of coronavirus vaccines is "absolutely essential" for summer holidays to take place.
"The UK government is continuing to advise against all non-essential travel, with a negative test result required to fly into the UK and five day 'test to release' or 10 day quarantine required on return to the UK from foreign travel. Official guidance therefore, remains changeable. As a result, the company continues its cautious approach to summer 2021, with seat capacity continually being refined as UK and EU travel guidance evolves," Jet2 said late Thursday when announcing the fundraise.
It added the same day that it has cancelled all flights until April 15 and it is "subsequently scheduled to operate with a reduced flying programme".
By Zoe Wickens; [email protected]
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