26.05.2022 - 02:57 UTC
Air France-KLM has launched a capital increase to bolster its finances and repay more of the state aid it received during the pandemic, saying that now is the right time to seek shareholder support amid an invigorated air travel market, it said in a statement and prospectus released on May 24.
The rights issue for existing shareholders targets a gross amount of EUR2,255,645,459 euros (USD2.41 billion), with 1,927,902,102 new shares to be subscribed in cash, “by payment in cash or by offsetting receivables”, at a unit price of EUR1.17 (USD1.25) on the basis of three new shares for one existing share. It will run from May 27 to June 9, inclusive.
The issue is the Air France and KLM Royal Dutch Airlines parent's second in just over a year and was widely expected. It takes it closer to repaying Covid-era government support and meeting European Union conditions for taking part in future mergers and acquisitions - such as the imminent privatisation of ITA Airways (AZ, Rome Fiumicino).
“The company...
25.05.2022 - 06:51 UTC
The deadline for submitting binding offers for Alitalia heir ITA Airways (AZ, Rome Fiumicino) expired at midnight on Monday, May 23. However, as part of the bid widely seen as having the best chance, Lufthansa (LH, Frankfurt Int'l) has reportedly halved its interest to a 20% stake.
According to local media, insiders confirmed reports that emerged earlier this month, that two offers for ITA are on the table at Italy’s Ministry of Economy and Finance: a consortium made up of Lufthansa and shipping giant MSC, and US-based investment fund Certares, which is reportedly working with Air France-KLM and Delta Air Lines (DL, Atlanta Hartsfield Jackson).
A third interested party, low-cost-carrier investor Indigo Partners, another US fund, appears to have withdrawn, the reason reportedly being that European Union legislation requires that the majority shareholder of a European airline be based in Europe and Indigo had not managed to find a suitable partner.
In the privatisation process, it is expected that the government will retain a minority stake of...
24.05.2022 - 11:26 UTC
Air France-KLM has entered exclusive talks with New York-based private equity firm Apollo Global Management for a EUR500 million euro (USD530 million) capital injection into an engineering and MRO affiliate that owns a pool of spare engines. The aim, it said, is to help repay French state aid.
“The proceeds of the transaction would enable Air France-KLM and Air France (AF, Paris CDG) to partially redeem the French state perpetual bonds” in accordance with European Union rules governing Covid-related state support, it said.
The funding would also “facilitate the financing of future spare engine acquisitions under Air France’s fleet renewal programme.” But the measure will not affect the group’s operations or workforce, it pledged.
The announcement comes less than a week after French shipping and logistics giant CMA CGM said it would acquire a stake of up to 9% in Air France-KLM as part of a long-term strategic partnership. The group has said previously that it plans to raise up to EUR4 billion (USD4.2 billion) to repay the state aid it received...
18.05.2022 - 09:57 UTC
French logistics giant CMA CGM plans to acquire a stake of up to 9% in Air France-KLM as part of a long-term strategic partnership.
In a joint statement, the two firms said the initial agreement will be for ten years and will see both parties combine their complementary cargo networks, full freighter capacity and dedicated facilities in order to build more competitive services.
In terms of aerial operations, the duo will operate a combined fleet of ten dedicated freighter aircraft (with an additional combined 12 on order) distributed as follows:
- four with CMA CGM Air Cargo (CMA, Paris CDG) (with outstanding orders for an additional eight aircraft, two of which may be operated by Air France-KLM in the future);
- six with Air France-KLM based at Paris CDG and Amsterdam Schiphol (with outstanding orders for an additional four).
The partnership also covers Air France-KLM’s bellyhold capacity, including over 160 long-haul aircraft, and will see both parties leveraging their respective global sales teams.
In terms of the equity buy-in, CMA CGM...
