British Airways’ owner IAG plans $3.2 billion rights share issue – Gulf Today

British Airways’ owner IAG plans $3.2 billion rights share issue – Gulf Today

British Airways' owner IAG plans $3.2 billion rights share issue

2 hours ago

British Airways' owner IAG said it is drawing up plans for a possible rights share issue of up to 2.75 billion euros ($3.2 billion) to strengthen its balance sheet.

International Consolidated Airlines Group (IAG) made the statement after Reuters reported that it was planning a rights issue of up to 2.5 billion euros, citing three sources.

IAG's share price has lost 66% of its value since the start of the year, as global air travel came to a halt during the coronavirus crisis. On Friday its stock fell more than 4% following the Reuters story on the rights issue.

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IAG said that no final decision has been made on whether or when to proceed with the rights issue, where new shares are offered to existing shareholders at a discount.

Two sources had earlier told Reuters that the company was targeting the end of the summer for the capital raise, which would keep the business afloat and avoid a government bailout.

"Being a rescue deal, investors will undoubtedly prefer to have more visibility on air traffic during the summer months," one said.

British Airways Airbus A380