EasyJet launches £1.2bn cash call after rejecting approach
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EasyJet has rejected a takeover approach and confirmed plans to raise £1.2bn in a rights issue to take advantage of post-pandemic opportunities.
The low-cost carrier said it had received an approach from a bidder it did not name. It said that the approach was “a low premium and highly conditional all-share transaction” which undervalued the company and that the bidder was no longer considering an offer.
Alongside the rights issue, EasyJet said it had secured a new $400m revolving credit facility from its banks. It said that the proceeds of the equity issue would be used to strengthen its balance sheet, invest in growth opportunities in its core western European markets and bolster its easyJet Holidays business.
EasyJet, which lost more than £2bn during the pandemic, still only expects to fly about 60 per cent of its 2019 schedule between July and September.