Easyjet turned down an offer from Hungarian low-cost rival Wizz Air to acquire 100% of the British company’s capital, according to market sources. No confirmation on the name from the English company, but to strengthen it, it launches a capital increase of 1.2 billion pounds. The operation, which has already been fully signed, will also be used to finance the “recovery after the pandemic,” the airline explains in a statement. The company has also agreed on commitments for a new four-year senior guaranteed revolving credit facility of $ 400 million.
During a call with the press, easyJet CEO Johan Lundgren did not want to confirm the name of the bidder, but limited himself to saying that the board “did not hesitate to reject the offer as it did not create value for the shareholders “.
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Wizz Air would have made the first move, according to market sources. The low-cost Hungarian company is embarking on an intense expansion plan in Europe by exploiting the weakness of its post-pandemic competitors.
On the Stock Exchange, the stock lost 9% in the morning on the London Stock Exchange: since the beginning of the year the share has lost 14%.
Through the capital increase, the airline will be able to “strengthen its balance sheet and exploit the growth opportunities deriving from the expected recovery of the air transport market in the coming years”. Shareholders will be able to purchase 31 new shares for every 47 existing shares at a price of 410 pence each, with a 35.8% discount on the theoretical ex-rights price of 638 pence per share.