Easyjet Share Discussion Threads

[sirshagalot] 09/9/2021 12:27

dilution makes these worth about 525, so do buyer,s now know something i dont?

[gettingrichslow] 09/9/2021 12:09

As ever, when it comes to rights issues, hardly anyone knows what they’re talking about. You can’t compare the current price to the estimated post-rights issue price because that doesn’t take into account the value of the rights themselves (which you’ll receive in case if you don’t exercise the right to buy more shares). It is this fundamental misunderstanding of rights issues which is the reason most people on here should not be investing in shares in the first place.

[porsche1945] 09/9/2021 12:05

god you would feel pretty sick if you had bought these yesterday, now stuck with being blackmailed into taking part in a highly dilutive hole plugging capital raise, just looking at charts/shares that will be in issue, these will be sub a fiver by next spring. interesting both recovery stocks and stay at home stocks like Asos getting hammered. Buyers seem to have just given up on uk indexes, the message fat wheezing boris bunter sent with his tax rises is that the uk is anti business.

[qantas] 09/9/2021 11:43

The Luton-based carrier said it had received an “unsolicited preliminary takeover approach” from an unnamed bidder but this had been “carefully evaluated and then unanimously rejected”. EasyJet added the potential bidder was “no longer considering” making an offer for the airline.


EasyJet revealed the takeover approach as it announced a £1.2 billion “rights” issue of new shares, as well as securing a new four-year credit facility of $400 million.


The company has decided to raise more funds from investors to “protect and strengthen easyJet’s long-term positioning in the European aviation sector”.


EasyJet added that raising this money would also allow it to “take advantage of long-term strategic and investment opportunities expected to arise” after the Covid-19 pandemic, particularly as “legacy” airlines look to restructure short-haul operations.


Some of the extra cash will also be used to bolster easyJet Holidays which the company said was “a key driver of incremental profitability and revenue growth”.


Johan Lundgren, easyJet’s chief executive, added: “The capital raise announced today not only strengthens our balance sheet enabling us to accelerate our post-Covid-19 recovery plan but will also position us for growth so that we can take advantage of the strategic investment opportunities expected to arise as the European aviation industry emerges from the pandemic.



“Since the onset of the pandemic, we have undertaken decisive and robust action to restructure our operations, addressed our cost base and secured our financial position.”



The board said the takeover offer “fundamentally undervalued” the company and the proposal was of a “highly conditional nature”, which led to its rejection.



EasyJet also gave an update on trading which showed that domestic UK capacity was now higher than during 2019 while flights within the EU reached 81% of 2019’s levels.



The airline said it expected capacity for July, August and September to be around 57% of 2019 levels. This is forecast to rise to 60% between October and December 2021 compared with two years ago.

Please do your own research as always.

[stallone10] 09/9/2021 11:42

So I bought shares today will I be entitled to buy the rights issue?

[qantas] 09/9/2021 11:41

EasyJet has revealed that it has rejected an “unsolicited” takeover approach as the airline launches a £1.2 billion issue of shares to bolster its finances.

[kinwah] 09/9/2021 11:04

I won't confuse you with the hypothetical case of if you bought yesterday. You won't be on the register but you are still entitled to the rights. Your broker will make a market claim to ensure the seller delivers them to you. Corporate actions are so much easier with Crest. Someone will ask the question about selling some of the nil-paids. Yes that is possible by 'splitting' the letter. Also there is the option of doing absolutely nothing. In that case all the shares not taken up by holders will be sold in a rump placing and the proceeds divided up pro rata. Quite often these rump placings are done at a cheap price with the broker's favourite institutions so often it is better to sell the nil-paids in the market. All this free education I'm giving but you're welcome.

[eddie1980] 09/9/2021 10:52

If that is the case, the shares are effective up on yesterday (presumably from the certainty of cash / rejected bid.) as ex-rights price based on last nights closing was 638p and we are at 720 or so.

[eddie1980] 09/9/2021 10:50

from fool website:

easyJet shareholders will be entitled to buy 31 new shares for every 47 shares they own. The new shares will be sold at 410p. That’s a hefty 48% discount to Wednesday’s closing price of 789p.

This gives the stock an ex-rights price of 638p. This is the theoretical price the shares will trade at when the new shares are admitted to trading later in September.

The record date for entitlement to new shares was 8 September. So, anyone buying the shares from today onwards will not be entitled to buy new shares in the rights issue.

[eddie1980] 09/9/2021 10:42

Kinwah: Are you sure?

From the announcement:
States the record date to be on share register is end of Wednesday. On the Monday, those shares are then split to show separately the existing share and the right to buy the new shares.


What is the record date for entitlement if not the date for entitlement?

Record Date for entitlements under the Rights Issue................ 6:00 p.m. on Wednesday 8
September 2021
Approval of the Prospectus by the FCA ................................... Thursday 9 September 2021
Announcement of the Rights Issue.......................................... Thursday 9 September 2021
Publication of the Prospectus.................................................. Thursday 9 September 2021
Date of dispatch of Provisional Allotment Letters or CSN Forms
of Instruction (to Qualifying Non‐CREST Shareholders only)......
Friday 10 September 2021
Admission and dealings in the New Shares, nil paid, commence
on the LSE and Existing Shares marked ex‐Rights.....................
8:00 a.m. on Monday 13
September 2021
Nil Paid Rights credited to stock accounts in CREST (Qualifying
CREST Shareholders only)........................................................
As soon as practicable after
8:00 a.m. on Monday 13
September 2021
Nil Paid Rights and Fully Paid Rights enabled in CREST............... As soon as practicable after
8:00 a.m. on Monday 13
September 2021

[time for common sense] 09/9/2021 10:37

You are perfectly right. Problem is some people here do not see it because they have AZN, GSK, Pfizer and other medical scammers in theirs portfolios, so they want them to carry on with covid scam.

[gettingrichslow] 09/9/2021 10:14

I’m afraid there were a lot of people on this discussion board about a year ago with no vision whatsoever about the future, who declared that the pandemic was ‘over’ - big mistake - it wasn’t over then and it isn’t over now! Airlines are screwed. I’ve said that here at least 10 times. Sell.

[loganair] 09/9/2021 10:13

Compared to 2019, many airlines around the world have 25% to 50% more debt on their books and 25% to 50% more shares in issue so even if in 2022/2023 they manage to go back to 2019 passenger levels their profitability per share will be way down on what it use to be.

[gettingrichslow] 09/9/2021 10:11

Tergifts, in answer to your question the easiest thing to do is ‘swallow your tail’ which means you won’t need any new cash but will retain the value of your holding. Suggest you Google ‘swallow your tail rights issues’ and it’ll explain.

[rocketblast] 09/9/2021 10:10

EZJ will fall below £6. Always happens with rights issue investors take profits and run. Remember Covid is not over!! Too Risky

[tergifts] 09/9/2021 10:09

KinWah so on the 13th if I have no money to purchase my entitlement can I sell some/all on the 13th and then still take up my rights somehow. How will this work

[eddie1980] 09/9/2021 09:57

If I sell today, presumably I still get the entitlement to purchase (as record date was 6pm last night?) - is that right.

[tergifts] 09/9/2021 09:56

Hi Could someone please help/explain
I believe ex Rights day was yesterday I do not have any cash to take up my rights.
What are my options


Can I sell some/all my stock now and still take up my rights.

My stock is in a SIP with ii

[1224saj] 09/9/2021 09:46

Would I be right to assume that the contributors to this board in balance think this is a good call for easy jet. Because I'm assuming that the majority of long term holders would still be underwater at the post right price of 6.38?

[sirshagalot] 09/9/2021 09:35

porsche is on the BALL! good call

[mallorca 9] 09/9/2021 09:21

For the 1st time I actually think this could go bust - if travel restrictions continue.