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Air France-KLM prices capital raise at €4.84 a share

Tue 13 April 2021 10:52 | A A A

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(Sharecast News) - Air France-KLM on Tuesday started a capital raising as part of a €4bn recapitalisation to bolster its finances against the impact of the coronavirus pandemic.

The Franco-Dutch group priced the raise at €4.84 a share and said it could raise up to €1.04bn if demand was sufficient to exercise an option to increase the size of the rights issue.

It added that the subscription pricing amounted to an 8.85% discount to Monday's closing price.

It is the latest move by a major airline group to shore up finances after more than a year of Covid-19 travel restrictions which have cause massive losses for the industry.

Shares in the company were down 2% at €5.20.

Air France-KLM on Monday said it was expanding its partnership with China Eastern Airlines, as the Chinese carrier committed to subscribe to the issue. It will hold less than 10% of the firm's capital, while the French state has pledged to cover as much as two-thirds of capital increase.

US carrier Delta Air Lines and the Dutch state see their holdings diluted under the deal. Delta was barred from investing under the conditions on its own aid receipts from Washington.

Air France-KLM also said on Monday it would expand code-sharing operations with China Eastern to include flights linking Beijing to Paris and Amsterdam once passenger traffic recovers.

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