Air France-KLM Launches $1.18 Billion Capital Increase
By Olivia Bugault
Air France-KLM said late Monday that it has launched the planned
capital increase of around 988 million euros ($1.18 billion) and
that the net proceeds will be used to strengthen the balance sheet
and liquidity of its French arm.
The Franco-Dutch carrier said it will issue 186 million new
shares at a price of between EUR4.84 and EUR5.31 a share, and that
the capital raise for Air France could be up to EUR1.14 billion in
the event that the increase option is exercised in full.
The moves comes after EUR4 billion in state aid to recapitalize
Air France was approved by the European Commission last week. At
the time, the airline said the French state and China Eastern
Airlines Corp. were planning to join the capital increase, while
the Dutch state said it wouldn't be participating.
The company also said then that the recapitalization plan
includes the conversion of a EUR3 billion French state loan into a
perpetual hybrid bonds instrument.
In a separate statement late Monday, Air France-KLM said it was
strengthening its collaboration with China Eastern Airlines.
"In the context of the participation of China Eastern Airlines
to the share capital increase of Air France-KLM, both airline
groups have decided to extend the scope of their partnership," the
company said. The airlines will expand their commercial
collaboration and increase their operations between Beijing and
Europe through their joint venture, it said.
Write to Olivia Bugault at firstname.lastname@example.org
(END) Dow Jones Newswires
April 13, 2021 02:16 ET (06:16 GMT)
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