(Alliance News) - easyJet PLC on Tuesday said that a 2014 relationship agreement with founder Stelios Haji-Ioannou has been terminated after Haji-Ioannou's stake in the company dropped below 30% following a fundraise by the low-cost airline.
"As a result of the non-pre-emptive placing announced on June 24, 2020, the Haji-Ioannou concert party no longer holds 30% or more of the issued share capital of the company," easyJet said.
The FTSE 250-listed company said an agreement between it and Haji-Ioannou's vehicle easyGroup under controlling shareholder rules now has been terminated.
easyJet on Thursday last week said it had raised GBP419 million through a placing to enhance its liquidity position and strengthen its balance sheet.
The Haji-Ioannou family's stake in easyJet was diluted to 29.9% from 32.9% by the issue of new shares, a separate statement from easyJet showed.
Back in May, all four resolutions by Haji-Ioannou to remove the company's senior executives, including its chair and chief executive, were voted down by fellow shareholders. Haji-Ioannou has been harshly critical of easyJet's GBP4.5 billion aircraft order from manufacturer Airbus SE, something he has said the company cannot afford amid the Covid-19 downturn in travel.
Shares in easyJet were down 1.3% at 677.80 pence on Tuesday in London. The stock has more than halved so far this year.
By Tapan Panchal; tapanpanchal@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
easyJet (EZJ)