EasyJet said it rejected an unsolicited takeover bid that "fundamentally undervalued" the no-frills airline.
British hose EasyJet connected Thursday revealed it had rejected a takeover approach, reportedly from rival Wizz Air, and revealed a $2.0-billion lifeline arsenic the battered aviation assemblage looks to recover.
No-frills bearer EasyJet said successful a connection that the bid had undervalued the group, adding that the suitor was nary longer considering an connection and that the hose would present merchantability caller shares to rise astir £1.2 cardinal ($1.6 billion, 1.4 cardinal euros).
Bloomberg reported that the bidder had been Hungarian fund hose Wizz Air.
EasyJet meantime added that it had secured a caller recognition installation totalling $400 million.
"The committee precocious received an unsolicited preliminary takeover approach," EasyJet said successful the statement.
"This was cautiously evaluated and past unanimously rejected. The imaginable bidder has since confirmed that it is nary longer considering an connection for the company."
EasyJet said the "highly conditional all-share" connection "fundamentally undervalued the company".
The rights issues would "facilitate and accelerate the group's betterment from the interaction of the Covid-19 pandemic", it added.
Chief enforcement Johan Lundgren said the financing boost would besides presumption EasyJet for growth, allowing it to instrumentality vantage of concern opportunities "as the European aviation manufacture emerges from the pandemic".
© 2021 AFP
Citation: EasyJet rejects takeover bid, plots $2.0 bn lifeline (2021, September 9) retrieved 9 September 2021 from https://techxplore.com/news/2021-09-easyjet-takeover-plots-bn-lifeline.html
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