LONDON, July 31 (Reuters) - Qatar Airways has proposed two
directors for the board of British Airways owner IAG,
seeking to strengthen its position after backing the group's
planned 2.75 billion euro ($3.27 billion) cash call.
State-owned Qatar Airways, one of the Middle East’s biggest
carriers, has been building a stake in IAG since 2015 and now
holds 25.1% of the company.
IAG announced plans for the capital increase on Friday as it
seeks to shore up its finances after the COVID-19 pandemic
effectively brought the entire airline sector to a halt.
It said that Qatar would back the move and subscribe for its
pro rata entitlement. The Gulf carrier will also propose two
directors to join the board as non-executive directors, within
Qatar's proportionate representation rights under Spanish law,
IAG added.
The Spanish-registered group, which also owns Iberia and Aer
Lingus, said its annual shareholder meeting would be held on
Sept. 8, at which shareholders will be asked to approve the
capital increase.
"We believe our shareholders will be supportive," IAG Chief
Executive Willie Walsh told Ireland's RTE Radio.
If approved, the capital increase is expected to be launched
as soon as possible after the shareholders meeting.
(Reporting by Kate Holton
Additional reporting by Conor Humphries
Editing by David Goodman)