24.11.2023 - 01:48 UTC
An oversubscribed rights offer will net Finnair (AY, Helsinki Vantaa) around EUR558.2 million euros (USD609.5 million), according to preliminary offer results released by the airline on November 21, 2023.
A total of 19,038,769,224 new shares were subscribed for, or approximately 100.14% of the offer shares, at a price of EUR0.03 (USD0.033) per share. Subject to board approval, the total number of shares in Finnair will increase by 19,012,413,069, from 1,408,726,198 to 20,421,139,267 shares, as a result of the offering. After factoring in the net transaction costs, Finnair will receive net proceeds of about EUR558.2 million, of which approximately EUR239.6 million (USD261.6 million) is cash.
"Through this successful rights issue, we reduce Finnair's financing costs, support strategy execution to drive sustainable, profitable growth, and ensure the ability for future investments," said Finnair CEO Topi Manner.
When announcing the subscription last month, Manner said the objective was to strengthen Finnair's financial position, reduce financing costs, and repay a loan to its majority Finnish government owner. On November 24, the airline confirmed that a EUR400 million (USD438 million)...
Editorial Comment: Added detail on Finnish state loan repayment - 27.11.2023 - 08:47 UTC
08.10.2023 - 22:12 UTC
Finnair (AY, Helsinki Vantaa) has announced plans for a rights issue of up to EUR600 million euros (USD636 million) to improve its financial position. The primary goals are to lower financing costs, support sustainable growth, and ensure capacity for future investments, the company said in a statement on October 6.
The carrier's main shareholders - Finland's government owns around 55.8% of the company - back the move, which is, however, conditional on an extraordinary general meeting of shareholders granting formal approval on October 27. The offering is fully underwritten on a standby basis and is expected to be completed by the end of this year.
Gross proceeds will strengthen Finnair's balance sheet and position it to achieve its financial targets, it said. These include a 6% comparable operating profit margin by the end of 2025, maintaining a healthy debt-to-earnings ratio by the end of 2025, and resuming shareholder distributions from 2025 based on 2024 earnings. Proceeds will also be used to repay part of an outstanding EUR400 million (USD424 million) capital loan. Coupled with the...
