Air France-KLM has unveiled a € 2.256 billion equity plan to boost its balance sheet and repay aid it has received from the French government.
The French and Dutch governments plan to participate in the share capital increase, but China Eastern Airlines and Delta Air Lines will sell part of their rights to the shipbuilding company CMA, which will become a shareholder, according to plans announced last week. .
Air France-KLM also reaffirmed its goal of reducing its net EBITDA debt to around 2-2.5 by 2023.
The issue of shares will last from May 27 to June 9 at 1.17 euros for each new share or 3 new shares for each existing one and will allow the airline to repay some bonds and strengthen its balance sheet.
The new capital increase brings the group of airlines closer to repaying the state support it received during the coronavirus crisis, a step it must take to meet the EU’s conditions for participating in any further unification of airlines.
Source: Capital
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