How To Avoid Dilution In Aeromexico?

Today we’ll answer how to avoid dilution in Aeromexico (according to the carrier)? The airline has just announced a public tender offer to be launched by a third party. This offer will give existing shareholders an option to withdraw from the current capital stock. Nonetheless, the announcement sent Aeromexico’s publicly trade price crash from 3.89 pesos per share to less than 1.80 in one day.

Changes in Aeromexico

Aeromexico’s Chapter 11 restructuring will allow the company to raise approximately US$720 million of new capital and US$762.5 million of new debt, in addition to the equitization of a large portion of the airline’s recognized debt. These movements will put the airline in a robust financial position and enough liquidity to emerging in the best conditions.