Easyjet to raise £1.2B after rejecting takeover bid

Thursday, 09. September 2021 09:52

EasyJet plc revealed on Thursday that it received an unsolicited takeover approach, which was "carefully evaluated and then unanimously rejected" by its board. The prospective buyer offered a "low premium and highly conditional" all-stock deal which "fundamentally undervalued the company," according to the airliner.

Easyjet instead decided to launch a rights issue in order to raise around £1.2 billion. It intends to offer 31 new shares to qualifying shareholders for every 47 existing shares at £4.1 per share, a discount of 35.8%. "The capital raise announced today not only strengthens our balance sheet enabling us to accelerate our post‐COVID‐19 recovery plan but will also position us for growth so that we can take advantage of the strategic investment opportunities expected to arise as the European aviation industry emerges from the pandemic," EasyJet CEO Johan Lundgren said.

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Baha Breaking News (BBN) / DJ