PARIS (dpa-AFX) - Air France-KLM (AFRAF.PK) launched a 2.256 billion euros rights issue to existing shareholders to strengthen its balance sheet and accelerate the repayment of French state aid.
The airline noted that it will issue 1,928 million new shares that will run from from 27 May 2022 to 9 June 2022 at 1.17 euros per new share. The subscription price reflects a discount of 40% compared to the theoretical value of the company's ex-right share price, calculated on the basis of closing price on 20 May 2022.
The airline said it will use proceeds of the planned rights issue to reimburse about 1.7 billion euros of subordinate bonds issued in April last year and held by the French government, and to further reduce the company's debt.
The French State, Air France-KLM's largest shareholder (28.6%), has informed the company of its intention to participate in the Rights Issue, so that its post-transaction shareholding remains unchanged.
The Dutch State has informed the company that it intends to exercise its rights in proportion to its current shareholding in order for its shareholding to remain unchanged post Rights Issue.
China Eastern Airlines and Delta Air Lines have committed to participate in the Rights Issue on a cash neutral basis by subscribing to new shares through the sale of part of their Rights, using the net proceeds from selling Rights to CMA CGM.
The transaction will enable CMA CGM to become a new reference shareholder and an exclusive strategic partner for the cargo business. CMA CGM has committed to subscribe to the transaction for a maximum amount of 400 million euros and in such a way that its total shareholding does not exceed 9% of the Company's resulting share capital.
Last week, Air France-KLM said it entered into discussions with Apollo Global Management regarding the injection of 500 million euros of capital to an operating affiliate owning spare engines.
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