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EasyJet praises investors for backing £1.2bn rights issue

EasyJet has praised investors for supporting a £1.2 billion rights issue to help recovery from the pandemic.

The new shares were due to start trading on the London Stock Exchange this morning (Tuesday) following the announcement of the cash call earlier in the month.

The airline said it had received acceptances from investors for 93% of the new shares it sold as part of the £1.2 billion fully underwritten rights issue.

The cash call came as the budget carrier confirmed it had rejected an unsolicited takeover approach, reportedly from Wizz Air.

The rights issue will be used to reduce debt, help deliver a strong financial position going into the winter season where demand remains uncertain and give the airline funds to pursue growth opportunities as they arise.

Chief executive Johan Lundgren said: “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.

“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.”

He added: “EasyJet has been disciplined and decisive in maintaining a strong balance sheet, managing our fleet and network while looking after our customers.

“This will allow us to emerge from the pandemic with renewed strength, positioned as a structural winner in this rapidly evolving sector.

“We look forward to continuing to serve our customers with the same friendly service that has made us the brand of choice for millions whilst, at the same time, delivering value to our shareholders.”

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