(Alliance News) - easyJet PLC on Tuesday said its founder Stelios Haji-Ioannou's stake in the budget airline has been reduced to 15% from 25% after the dilution of the rights issue.
The 15% stake is hold by easyGroup Holdings Ltd - a holding vehicle for Stelios Haji-Ioannou and Clelia Haji-Ioannou - and Polys Holdings Ltd, which is a holding vehicle for Polys Haji-Ioannou.
The family of founder Stelios Haji-Ioannou has decided not to participate in the budget airline's rights issue after repeatedly saying that it has no plans to plough more money into easyJet while the airline sticks to a deal with Airbus SE to buy more planes.
Earlier on Tuesday easyJet said its rights issue closed for acceptances after receiving support from the 93% of shareholders, saying the fresh cash will "accelerate its post-Covid 19 recovery plan".
The rights offer, which saw shareholders offered 31 new shares for every 47 existing shares already owned, was announced on September 9. The rights issue was priced at 410 pence per share.
The company on Tuesday said it has received valid acceptances for 280.2 million new shares out of 301.3 million shares offered.
The GBP1.24 billion rights issue was fully underwritten, so the remaining shares will be placed by bankers BNP Paribas SA, Credit Suisse Group AG, Goldman Sach Group Inc, Banco Santander SA and Societe Generale SA.
easyJet shares were trading 2.3% lower in London on Tuesday at 692.80p each, giving it a market capitalisation of GBP5.20 billion. The stock is down 1.0% so far in 2021.
The FTSE 250-listed carrier turned to the cash raise as it looked to bolster its "long-term positioning" in the European airline market.
"The success of this capital raise, thanks to great support from investors, will enable easyJet to strengthen its balance sheet and accelerate its post-Covid 19 recovery plan," said Chief Executive Johan Lundgren.
"Importantly, it will position us to take advantage of strategic investment opportunities across our markets which will arise as we move into this period of recovery from the pandemic," added Lundgren.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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easyJet (EZJ)