easyJet rejects Wizz Air's takeover bid
The British airline EasyJet "unanimously" rejected a takeover bid. Although the company did not disclose the identity of the buyer, local media say it is about Wizz. The company's board of directors recently received an "unsolicited, non-binding and preliminary offer", which was rejected because it "underestimated" the company.
The company announced that it hopes to earn over 1.2 billion pounds (1.4 billion euros) through a new share issue. A capital injection that will serve to deal with the "devastating impact" that the COVID-19 pandemic has had on the sector in recent months, according to Johan Lundgren, the company's CEO.
The airline's purchase operation was "Extremely conditioned", while "the issue of fully subscribed rights " guarantees that EasyJet will reach its € 1.4 billion revenue target. Currently, the interested party "No longer considers the possibility of submitting another purchase offer".
The airline is consolidating its finances to be prepared for the continuation of the health crisis.
EasyJet has applied for a £ 290m (€ 338m) credit line for four years, which, in addition to issuing new securities, will increase its liquidity reserves to £ 5.5bn (€ 6.4bn). ).
EasyJet said in a statement that the issuance of rights offers shareholders a price of 410 pence per share, which is a 35.8% discount from the closing price of the London Stock Exchange - when the price was 638 pence.
The company reported - in July last year - that it recorded a gross loss of 318.3 million pounds (368.7 million euros) in the quarter ended June 30, a decrease of 8.2% compared to those reported in the same period last year, by 347 million pounds (401 million euros).