Investing.com – Aeroflot shares lost more than 3% on the day amid reports that the company plans to raise at least 80 billion rubles in an SPO. This amount is slightly less than the current capitalization of the company (approximately 89.5 billion rubles), which means that the share of minority shareholders and other shareholders will be greatly diluted.
At an extraordinary meeting of shareholders, it was decided to increase the authorized capital of the company by up to RUB 1.7 billion. through an additional placement of up to 1.7 billion ordinary shares, however, the final volume and price of the placement are unknown so far.
The state must buy out a little more than half of the additional shares being placed in order to keep its stake in the company at least 51.17% in accordance with the government's order. The state, which owns a controlling stake in the air carrier through the Federal Property Management Agency, intended to pay for the purchase with funds from the National Wealth Fund.
As part of the preemptive right to purchase Aeroflot's securities, the company received applications for the purchase of 986.997 million shares, including an application from the Russian Federation for the acquisition of 869.94 million shares, TASS reported.
At the same time, it is expected that in the course of accepting applications from institutional investors, they will be offered shares totaling about 39 billion rubles, Interfax notes.
State-controlled VTB (MCX: VTBR), the Russian Direct Investment Fund and Promsvyazbank were considering the possibility of investing in Aeroflot. Analysts interviewed by Interfax noted that in order to attract private investors to the SPO, Aeroflot will have to offer a price with a good discount to the market.
“The additional capital raised under this proposal will give us the support we need to recover from the crisis, as well as for further development in the future. The Russian market for passenger air transportation provides significant opportunities for long-term structural growth, “said Vitaly Savelyev, Aeroflot CEO, quoted by TASS.
In addition to the Rosimushchestvo package, 3.5% in Aeroflot (MCX: AFLT) belongs to the Rostec state corporation, 5.1% belongs to individuals, 0.1% belongs to the company's management, another 4.3% is a treasury package, 35.7 % – from institutional investors.
The text was prepared by Alexandra Shnitnikova