The Virgin Australia Group today announces the outcomes of its capital structure review:
Proposed fully underwritten A$852 million equity raising, in the form of a 1 for 1 non-renounceable pro-rata entitlement offer to shareholders at a price of A$0.21 per share ('Offer').
Singapore Airlines, HNA Innovation1, Virgin Group, Nanshan Group2 and Air New Zealand3 have made binding commitments to take up their pro-rata entitlements. Singapore Airlines, HNA Innovation and Virgin Group have also made binding commitments to contribute to the sub-underwriting of entitlements not taken up by other shareholders.
Together, the proposed Offer and the previously announced proposed A$159 million placement to HNA Innovation will raise total gross proceeds of A$1,011 million4 in new equity capital to strengthen the Group's balance sheet, improve earnings and cash flow and support new opportunities for growth.
AIZ dodged a bullet there - thats one hell of a dilution...
AIZ Price at posting:
$1.99 Sentiment: Buy Disclosure: Held
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