schreef:
Roissy, June 14th 2022
Air France-KLM announces the success of its €2.256 billion rights issue
The capital increase generated strong demand from existing and new investors, for a total amount of €2.6 billion
The French and Dutch states participated to the full extent of their rights, to maintain their shareholdings unchanged, reiterating their confidence in Air France-KLM’s performance
CMA CGM becomes a new strategic reference shareholder with a 9.0% stake in Air France-KLM’s share capital
Net proceeds from the capital increase will be mostly used to accelerate State aid repayment and reduce related financial costs, as well as to reduce Air France-KLM’s indebtedness
Air France–KLM (the “Company”) today announces that it has successfully completed its share capital increase with preferential subscription rights (the “Rights”) announced on May 24th 2022 (the “Rights Issue”). Following the subscription period, which ended on June 9th 2022, the total demand amounted to approximately 2,240 million shares, for an amount close to €2.6 billion, corresponding to a well oversubscribed transaction with a take-up rate of approximately 116%:
* 1,831,278,510 new shares were subscribed on an irreducible basis (à titre irréductible), representing approximately 95% of the new shares to be issued;
[]b* orders submitted on a reducible basis (à titre réductible) represented 409,004,428 new shares
and will therefore only be partially allocated for a number of 96,623,592 new shares.The final gross proceeds of the Rights Issue, including the issue premium, amount to approximately €2,256 million
(of which €1,611 million in cash) corresponding to the issuance of 1,928 million new shares (the “New Shares”) with a par value of €1 at a subscription price of €1.17 per share.[/b]
Benjamin Smith, CEO of Air France – KLM, stated “The success of our capital increase is a strong demonstration of the confidence that our existing shareholders and new investors have in the prospects of Air France-KLM. This operation, which is part of a broader strategy to transform and streamline our Group, will allow us to emerge with a stronger balance sheet and increased strategic flexibility. In a context of strong demand for travel, Air France-KLM will continue to implement its roadmap focused on increased profitability and sustainability, while meeting its customers’ expectations, fulfilling its CSR commitments and seizing the opportunities that will arise as the airline industry recovers.”
As announced on February 17th and detailed in the press release dated May 24th 2022, this transaction implements new recapitalization measures, following the 2021 initial capital increase.
* The net proceeds of the issue will be partly allocated to repaying the deeply subordinated bonds issued in April 2021 and held by the French state as well as strengthening the Company’s equity. As announced during its full-year results presentation on February 17th 2022, the Company intends to free itself from the conditions set by the European Commission’s Covid-19 temporary framework and will therefore allocate about €1.7 billion to the repayment of the "Covid-19 recapitalization aid" granted in the form of undated subordinated notes (the "TSS État") issued in April 2021, through offset and repayment. The remainder (about €0.6 billion) will come to reduce net debt.
SNIPMain shareholders subscription
The French state, Air France-KLM’s largest shareholder (with 28.6% of the Company’s share capital and 28.1% of voting rights), participated on an irreducible basis to the full extent of its Rights, corresponding to a subscription of 551,404,728 New Shares. Its shareholding after the completion of the Rights Issue remains unchanged.
This subscription was carried out by way of offsetting a portion of the deeply subordinated notes (TSS Etat) issued in April 2021.