Finnair plans to launch a rights issue before the end of this year to raise €600 million in fresh capital. The proceeds will be used to repay part of a €400 million standing loan and support the revised strategy that has been implemented since it was announced in September last year.
The rights issue, which was announced last Friday, needs shareholder approval, for which an extraordinary general meeting will be held on October 27. Once authorization has been granted, the offering should be completed during Q4.
The Finnish state, which owns 55.8 percent of the airline, is supporting the rights issue. The state intends to subscribe at a pro-rata share of the new shares but expects to pay the subscription price of the shares by offsetting it against the corresponding amount of the capital loan that was granted to Finnair. Three other shareholders, all pension insurance companies that won a combined 3.4 percent, also support the rights issue. The remaining 40.7 percent is fully underwritten on a stand-by basis.
Unlock the Full AirInsight Analysis & KPI Models
Get instant access to proprietary fleet valuation models, production & delivery forecasts, engine cost analytics, and the complete subscriber archive.
Not ready for a paid pass?
Create a free account
to access executive summaries and public market updates.
