EasyJet has rejected a takeover bid and is issuing a £1.2 billion shares to restore its balance sheet and to be able to invest itself in growth. That’s what the British low coster announced on Thursday.
An unsolicited takeover bid was received and was rejected after careful assessment. The potential bidder waives an offer, EasyJet reported, pointing to the low premium of the offer.
The airline itself sees opportunities as a result of the pandemic.
“The board concluded that raising additional equity capital will protect EasyJet’s long-term positioning in the European aviation sector and support growth as new opportunities emerge from the coronavirus pandemic,” the company said.
The new shares, which have already been fully subscribed, bring the balance sheet back to pre-pandemic level and strengthen liquidity, the airline said. A new $ 400 million credit line has also been closed.
EasyJet further said that capacity in the fourth quarter will be around 57 percent of its two-year level. This should be close to 60% in the next quarter. Within the EU, the capacity was 81%. The loading rate was 82% in August and for flights within the EU it was 85%.