PARIS (Agefi-Dow Jones)–Air France-KLM fell 10.9% on Tuesday, to 1.34 euros, as the air carrier announced that it had carried out its capital increase of 2.256 billion euros, supposed to allow it to turn the page on the health crisis.
The net proceeds of this operation will be allocated to the reimbursement of part of the aid from the French State, in the amount of 1.7 billion euros, and for the balance, i.e. approximately 600 million euros, to the reduction of the group’s net debt.
However, even after this operation, the company should show negative equity of 3.2 billion euros, indicates the Stifel bank in a sector note published on Tuesday morning.
“The balance sheet remains extremely weak” and “if, as we expect, market fundamentals deteriorate next year, this weakness will become an even more pressing problem”, adds the financial intermediary, who maintains his “sell” recommendation. on the title.
“This operation marks an important step in the execution of the program of issuance of shares and quasi-equity of a maximum amount of 4 billion euros intended to strengthen the balance sheet, as announced on February 17”, a underlined for its part Air France-KLM in a press release.
“In the context of an expected improvement in the company’s performance, and [avec] target of an operating margin of 7% to 8% by 2024, the company is confident that no further dilutive measures will be necessary.
New reference shareholder
The Franco-Dutch carrier issued 1.928 million news at a price of 1.17 euro per title. “At the end of the subscription period, which ended on June 9, 2022, the total demand amounted to approximately 2,240 million shares, or nearly 2.261 billion euros. The operation was oversubscribed with a subscription rate of around 116%,” he said.
The French and Dutch States have subscribed up to their respective stakes, thus retaining 28.6% and 9.3%, respectively, of the capital.
CMA CGM, with which Air France-KLM signed a strategic partnership last month for an initial period of ten years in air cargo, has for its part become a “new reference shareholder” by taking a stake corresponding to 9% capital. The Air France-KLM general meeting, held at the end of May, approved the appointment of the owner’s CEO, Rodolphe Saadé, as a member of the air carrier’s board of directors.
The Chinese and American airlines China Eastern and Delta Airlines also participated in the capital increase and respectively hold 4.7% and 2.9% of the capital of Air France-KLM after the operation.
-François Schott and Alice Doré, Agefi-Dow Jones; +33 (0)1 41 27 47 92; [email protected] ed: VLV
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June 14, 2022 07:20 ET (11:20 GMT)