Shareholders in BA owner IAG back rights issue

LONDON, Oct 1 (Reuters) - British Airways owner IAG
announced the results of its 2.74-billion-euro capital increase,
saying on Thursday that it sold 100% of the new shares in its
plan to help strengthen its pandemic-hit finances.

The funds will be used to reduce debt and help IAG withstand
a prolonged downturn in travel, chalking up a first success for
new CEO Luis Gallego who took over from Willie Walsh in
September.

"We’re delighted our shareholders have supported the capital
raise. It strengthens IAG’s financial and strategic position,"
Gallego said in a statement provided by the company.

IAG said on Thursday that it sold 93% of the new shares
during the pre-emptive subscription period, with demand for the
remaining shares available oversubscribed many times over.

The airline group, which also owns Iberia, had already said
that its largest shareholder, Qatar Airways Group, which has a
25.1% holding, had undertaken to subscribe for its pro-rata
entitlement in the fully underwritten capital increase.

(Reporting by Sarah Young
Editing by Mark Heinrich)