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12 Feb 2021 | 07:56

Jet2 raises £422m to help weather pandemic

(Sharecast News) - Jet2 said on Friday that it has raised around £422m in a placing to help the airline and holiday company to weather the Covid-19 pandemic. The fundraising was "significantly oversubscribed", Jet2 said. It comprised 35.2m placing shares and subscriptions for 593,561 retail shares, all of which were placed at 1,180p each, which is a 9.1% discount to the closing share price on Thursday.

Executive chairman Philip Meeson said: "The board is grateful to both existing shareholders and new investors for their significant support of this equity issue. Based on the indicative scenario planning undertaken by management, the board believes that the proceeds will provide sufficient liquidity on an extended and likely unpredictable shutdown basis to deal with this continually challenging trading environment.

"Furthermore, the directors believe the fundraise will enable management to continue to adopt a decisive, but prudent, responsible financial management approach; take longer-term strategic decisions to support sustainable long term profit growth; and improve the ability for Jet2 to exit the pandemic in a stable commercial position so that it is well positioned to capitalise on the upturn opportunity when it arrives."

At 0820 GMT, the shares were down 6% at 1,220p.
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