Easyjet - EGM 14 July 2020
Easyjet plc called this meeting to approve an additional tranche for the non-pre-emptive placing of ordinary shares. A total of 59,541,498 new ordinary shares (14.99% of the capital) was placed on 25 June 2020 at a price of 703p per share (5% discount to the closing share price the day before). The raised gross proceeds amount to £419m.
Together with the anticipated remaining proceeds from the sale and leaseback programme of £200-350m, the Company would expect to have a cash balance over £3.0bn, providing a significant liquidity buffer to enable it to navigate further grounding or protracted recovery scenarios. This means it now has enough cash to withstand nine monthsnof full grounding of its fleet.
We regret that the Company did not offer a pre-emptive placement to all shareholders. However, we consider a 15% capital increase at a 5% discount acceptable under the current exceptional circumstances and higher risks of the airline industry. It also respects the UKns Pre-Emption Group temporary guidance issued to ease the Covid-19 pandemic uncertainty. ECGS recommends to vote FOR.
EasyJet and its subsidiaries are a low-cost airline carrier operating principally in Europe. Co. operates in the European short-haul aviation market. As of Sept 30 2017, Co. operated 862 routes. Co.'s total fleet as at Sept 30 2017, comprised 279 aircraft, split between 156-seat Airbus A319s, 180-seat A320s, 186-seat A320s and 186-seat A320neos. Co.'s main markets are the U.K., France, Italy, Switzerland, Germany, Netherlands, Portugal and Spain.
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