Connect with us

Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website. .

Investing

Air France-KLM to raise 1 billion euros via share issue

2021 04 12T175333Z 1 LYNXMPEH3B16N RTROPTP 4 HEALTH CORONAVIRUS AIR FRANCE KLM NETHERLANDS - Global Banking | Finance

PARIS (Reuters) -France is bailing out stricken Air France-KLM via a one billion euro share issue that will more than double its stake in the airline to nearly 30% while its Dutch co-owners ruled out taking part in the refinancing, terms of a proposed capital increase showed on Monday.

Air France-KLM said in a statement it had launched a share issue to raise about 988 million euros ($1.2 billion) to strengthen its liquidity and finance its general needs in the context of the COVID-19 crisis.

The new shares will be priced at 4.84 and 5.31 euros apiece.

The French state, which holds 14.3% of the airline’s share capital, has committed to subscribe up to a maximum of 65.9% of the capital increase, so as not to hold more than 29.9% of the company’s share capital following completion of the operation.

China Eastern Airlines, which holds 8.8%, will subscribe to the issue in order to hold less than 10% of the firm’s capital.

The Dutch state, which holds 14.0% of the share capital, has informed the company of its intention not to participate in the capital increase. Delta Air Lines, which holds 8.8% of the share capital, will also not partake.

Air France-KLM said it was not aware of the intentions of its other shareholders in relation to the capital increase.

In a separate statement, the airline said that in the context of China Eastern’s participation in the capital increase, both airline groups have decided to extend the scope of their partnership through intensified commercial cooperation and an extended collaboration to non-commercial related activities such as ground services, catering or maintenance.

They will also increase their footprint on the Beijing market, with the Paris-Beijing and Amsterdam-Beijing routes joining the current joint venture between Air France-KLM and China Eastern Airlines when conditions are satisfied.

Following a codeshare partnership that started in 2000 on the Paris-Shanghai route, China Eastern first took an equity stake in Air France-KLM in 2017. ($1 = 0.8393 euros)

(Reporting by GV De Clercq;Editing by David Holmes and Dan Grebler)

Global Banking & Finance Review

 

Why waste money on news and opinions when you can access them for free?

Take advantage of our newsletter subscription and stay informed on the go!


By submitting this form, you are consenting to receive marketing emails from: Global Banking & Finance Review │ Banking │ Finance │ Technology. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Post