A decision by Qantas not to participate in the current Helloworld Travel rights issue and capital raising (TD 16 Jul) has seen the carrier’s stake in the company reduced from 15.44% to 12.82%.
Qantas retains just over 19 million shares in HLO, but the company’s current $50 million capital raising involves the issuing of another 16.4 million shares, meaning the QF stake is diluted.
The HLO offer to existing shareholders invites investors to subscribe for one new share for every nine that they currently hold, at a price of $1.65 each.
At the time the offer was announced that was a 16% discount to the traded price, but HLO shares have since dropped and are today trading at $1.66.
Helloworld CEO Andrew Burnes and Executive Director Cinzia Burnes are taking up 70% of their entitlement at a cost of $5m.
The company says the funds raised will give it “significant liquidity to withstand the prolonged disruption to global travel,” while revised banking arrangements also confirm no dividends will be payable until Dec 2021 without bank consent.
The post QF reduces its stake in Helloworld appeared first on Travel Daily.
Source: traveldaily