Norwegian Air CEO and chairman to sell some share subscription rights at discount

Deal to help carrier raise cash after IAG ruled out bid for the airline last month

 The chief executive of Norwegian Group Bjoern Kjos. Photograph: Marcos Brindicci/Reuters

The chief executive of Norwegian Group Bjoern Kjos. Photograph: Marcos Brindicci/Reuters

 

Norwegian Air’s chief executive and its board chairman agreed to sell some of their subscription rights to a share issue at a discount in a deal that will help the loss-making carrier raise cash, they said on Monday.

The sale of the subscription rights, which had been expected, will dilute the 24.66 per cent stake held in Norwegian by chief executive Bjoern Kjos, chairman Bjoern Kise and their families, via their HBK Holding vehicle, although it was not clear by how much.

Norwegian Air on January 29th announced plans to raise 3 billion Norwegian crowns (€307m) in a share sale, just days after British Airways and Aer Lingus owner IAG ruled out a bid for the budget airline.

“HBK has agreed to sell the subscription rights at a price of 70 per cent of the theoretical value of the subscription rights at the time of pricing of the rights issue, expected on or about February 18th,” HBK said in a statement.

The buyer or buyers of the rights, who were not named, have committed to a total investment of 500 million crowns, including the purchase of subscription rights and subscription in the rights issue, it added.

“The number of subscription rights to be sold [by HBK] will be determined based on the subscription price and number of new shares to be issued in the rights issue,” HBK said.

Norwegian Air said last month billionaire investor John Fredriksen was among those who agreed to take part in its share issue. – Reuters