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LONDON, Sept 9 (Reuters) - British airline easyJet
said on Thursday it would raise 1.2 billion pounds ($1.7
billion) in a fully underwritten rights issue to fund its
pandemic recovery, and added it had recently rejected a takeover
offer.
The company said it had rejected an all-share takeover
approach which it believed fundamentally undervalued the
company. It said the potential bidder had since stated that it
was no longer interested in a deal.
EasyJet said that the rights issue presented the company
with a strategic opportunity because it planned to use the new
funds not just to strengthen its balance sheet, but to take
advantage of growth opportunities that arise from the expected
recovery in Europe's aviation market over the coming years.
It wants to steal market share from legacy carriers like
British Airways-owner IAG, once a rumoured suitor of
easyJet, and Air France-KLM as they restructure their
short-haul operations.
Under the rights issue, shareholders will be able to buy 31
new shares for every 47 existing shares at a price of 410 pence
each, a 35.8% discount on the theoretical ex-rights price of 638
pence per share on Sept. 8, easyJet said.
The rights issue is underwritten by BNP Paribas, Credit
Suisse, Goldman Sachs, Santander and Societe Generale.
It also announced a new committed $400 million secured
revolving credit facility.
($1 = 0.7264 pounds)
(Reporting by Sarah Young; Editing by Kate Holton)