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.
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.
Nonetheless, the Chapter 11 bankruptcy will impact Aeromexico’s current shareholders. They will inevitably dilute, as will also happen with Avianca and LATAM’s shareholders. Therefore, a third party unrelated to Aeromexico will make a voluntary tender offer in Mexico. The objective is to give existing shareholders the option to withdraw and avoid substantial dilution once the Plan is implemented.
Today we’ll answer how to avoid dilution in Aeromexico? 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.
We use cookies to optimize our website and our service.
Functional
Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes.The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
