{"id":3799,"date":"2019-02-19T17:46:14","date_gmt":"2019-02-19T23:46:14","guid":{"rendered":"http:\/\/planesintheair.com\/?p=3799"},"modified":"2019-02-19T17:46:19","modified_gmt":"2019-02-19T23:46:19","slug":"norwegian-air-owners-approve-discount-share-sale","status":"publish","type":"post","link":"https:\/\/planesintheair.com\/?p=3799","title":{"rendered":"Norwegian Air Owners Approve Discount Share Sale"},"content":{"rendered":"\n

OSLO\n (Reuters) – Norwegian Air’s shareholders overwhelmingly endorsed on \nTuesday the lossmaking airline’s plan for a deeply discounted cash call \nto help bolster its finances, Chairman Bjoern Kise said.<\/p>\n\n\n\n

Norwegian\n Air said on Jan. 29 it would raise 3 billion Norwegian crowns ($348 \nmillion) in a rights issue, just days after British Airways owner IAG \nruled out a bid for the budget carrier.<\/p>\n\n\n\n

Norwegian\n is trying to replicate on transatlantic flights the low-cost model that\n dominates the short-haul market, exemplified by the likes of Ryanair \nand easyJet, but is struggling to make the business profitable.<\/p>\n\n\n\n

The\n European airline sector faces overcapacity and high fuel costs, with \nseveral operators going out of business, the latest being British-based \nFlybmi which filed for bankruptcy on Sunday.<\/p>\n\n\n\n

In\n the rights issue, Norwegian’s owners will get the right to buy two new \nshares at 33 crowns each for every share they own, compared with \nMonday’s closing price of 93 crowns.<\/p>\n\n\n\n

Holders of more than 99 percent of Norwegian’s equity backed the proposal at a meeting on Tuesday, company officials said.<\/p>\n\n\n\n

By\n selling new shares far below the market price, Norwegian will boost the\n value of each of the purchasing rights, which can be bought and sold.<\/p>\n\n\n\n

This\n in turn allows Norwegian Air Chief Executive Bjoern Kjos and his \nbusiness partner, the group’s chairman, to sell some of their \nsubscription rights and reinvest the proceeds in new shares, thus \nlimiting the dilution of their joint stake which stands at 24.66 \npercent.<\/p>\n\n\n\n

Norwegian said last month that billionaire investor John Fredriksen was among those who had agreed to take part in the issue.<\/p>\n\n\n\n

($1 = 8.6295 Norwegian crowns)<\/p>\n\n\n\n

(By Terje Solsvik, Editing by Nerijus Adomaitis and David Holmes)<\/p>\n\n\n\n

\"\"<\/figure>\n","protected":false},"excerpt":{"rendered":"

Norwegian Air’s shareholders overwhelmingly endorsed on Tuesday the lossmaking airline’s plan for a deeply discounted cash call to help bolster its finances, Chairman Bjoern Kise said.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[797,89,2203,1397,868,1103],"tags":[539,420,625,142,3160,3461,624,1190,1925,2053,3460,419,2761,3423,3463,620,1536,2886,3462,412,1514,97,1513,1485,1288,2613,418,2268],"class_list":["post-3799","post","type-post","status-publish","format-standard","hentry","category-airline-news","category-aviation-news","category-finance-news","category-stock-news","category-transportation-news","category-travel-news","tag-air","tag-airline","tag-airways","tag-bankruptcy","tag-bid","tag-bjoern","tag-british","tag-budget","tag-carrier","tag-chairman","tag-crowns","tag-easyjet","tag-finance","tag-flybmi","tag-fredriksen","tag-iag","tag-issue","tag-john","tag-kise","tag-news","tag-norway","tag-norwegian","tag-oslo","tag-plan","tag-reuters","tag-rights","tag-ryanair","tag-shareholder"],"_links":{"self":[{"href":"https:\/\/planesintheair.com\/index.php?rest_route=\/wp\/v2\/posts\/3799","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/planesintheair.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/planesintheair.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/planesintheair.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/planesintheair.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3799"}],"version-history":[{"count":1,"href":"https:\/\/planesintheair.com\/index.php?rest_route=\/wp\/v2\/posts\/3799\/revisions"}],"predecessor-version":[{"id":3801,"href":"https:\/\/planesintheair.com\/index.php?rest_route=\/wp\/v2\/posts\/3799\/revisions\/3801"}],"wp:attachment":[{"href":"https:\/\/planesintheair.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3799"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/planesintheair.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3799"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/planesintheair.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3799"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}