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EasyJet’s largest shareholder will not contribute to the airline’s £ 1.2 billion cash call.

The family of founder Stelios Haji-Ioannou, the largest shareholder of EasyJet, said it would not contribute to the airline’s £ 1.2 billion cash claim.

  • After refusing to buy from Wizz Air, the carrier reportedly asked shareholders if they would support it with a rights issue cash injection.
  • However, according to people familiar with the situation, the Hajiio Anou family has sold their right to buy new shares.
  • Haji-Ioannous has sold 76.3 million unpaid rights for £ 1.65, a 15% discount on Thursday’s closing price, sources said.


The family of easyJet’s largest shareholder, founder Stelios Haji-Ioannou, has decided not to support low-cost carriers as it seeks to raise £ 1.2 billion from its backers.

After refusing the acquisition. From Wizz Air, carriers reportedly sent it to shareholders with a cash injection via a rights issue to get the balance sheet back on track and invest in a new generation of aircraft to improve overall efficiency. Asked if you would like to support.

However, according to people familiar with the situation, the Hajiio Anou family has sold their right to buy new shares.

The family of founder Stelios Haji-Ioannou, the largest shareholder of EasyJet, has decided not to support the low-cost carrier as it is trying to raise £ 1.2 billion from its backers.

When a company launches a rights issue, existing shareholders are always offered the opportunity, or right, to buy new shares at a discounted price rather than the prevailing price.

The size of the discount depends on the amount of new funds raised, how investors recognize the company, and general market conditions.

Haji-Ioannous, who originally made a fortune in the shipping industry, sold 76.3 million unpaid rights for £ 1.65, a 15% discount on Thursday’s closing price, sources said.

The family has repeatedly said that while airlines are sticking to the deal with Airbus to buy more planes, they have no plans to spend any more money on easyJet.

As a result of the rights issue, family holdings are set to decrease from 25.3% when the new stock went public on September 28 to 15.2%.

EasyJet has already raised over £ 5.5bn since the start of the Covid crisis, including £ 420m from shareholders.

We also employ a number of cost-cutting measures, including selling planes, dismissing staff, and dismissing up to 4,500 employees, or about 30% of our employees.

In terms of finance, easyJet reported an annual loss of £ 1.3 billion at the beginning of last year and lost another £ 1 billion in the first nine months of the fiscal year.

Both EasyJet and family representatives refused to comment on rights issues.

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EasyJet’s largest shareholder will not contribute to the airline’s £ 1.2 billion cash call.

Source link EasyJet’s largest shareholder will not contribute to the airline’s £ 1.2 billion cash call.

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