Easyjet Share Discussion Threads

[macromike] 10/9/2021 08:44

Strangely quiet on here for a ftse100 company in the middle of a hugely discounted rights issue. Everyone holding their breath until 4.30pm or is the internet broken?

[macromike] 10/9/2021 08:07

On Monday, this opens at the rebased price (ex-rights) at about 190p lower than today's closing price, right? Anyone selling existing shares today makes nominally 190p a share more than they will on Monday - am I missing something?

[qantas] 10/9/2021 08:05

Such a big rights issue does not bode well for shareholders due dilution.

Shares always seem to drop with rights issues example MKS.



Please do your own research as always.

[qantas] 09/9/2021 22:33

EasyJet Spurns Offer From Rival Wizz Air 

[chiefbrody] 09/9/2021 21:20

On the one hand i'd like to support this as EZJ could well recover and go on to be very profitable again.On the other, it's perfectly clear that our government is deliberately out to trash our airlines. I suppose EZJ could just survive without the UK business, given its Euro operations.Not sure what profits come from Europe vs UK though off the top of my head.Desperate desperate times.

[loganair] 09/9/2021 20:22

Set against this barrage of changes at easyJet, its founder and shareholder Stelios Haji-Ioannou is on the verge of founding another budget carrier in Europe. Stelios has, according to reports, been incredibly unhappy with the direction the airlines current management are taking for some time and is seriously ready to create a new pan Europe airline. According to one source, the 54-year-old Greek Cypriot entrepreneur's associates have already held talks with an aircraft manufacturer as well as some potential financial investors

Stephen Hester, former boss of Royal Bank of Scotland and More Than insurance parent company, will become the chairman of easyJet at the end of the year. Many see Hester's appointment as proof the airline is being made ready for a takeover or merger with another airline.

The future, may not be orange at all.

[diku] 09/9/2021 19:34

If the wider shareholders don't have any details of the bid approach then one is taking the BODs statement and the bid rejection at face value...I think such info should be fully transparent to wider shareholders...




If the cash call was predictable, then a bid approach from rival Wizz Air Holdings PLC was anything but. It was unanimously rejected by the easyJet board as “a low premium, highly conditional all-share offer”. Stick that in your pipe and smoke it.

[loganair] 09/9/2021 18:18

“The capital raise is unsurprising given the continuing travel restrictions over the summer and inevitably high cash burn over the winter, even if restrictions and testing requirements are eased following the government review, which should be published on October 1.”

If the cash call was predictable, then a bid approach from rival Wizz Air Holdings PLC was anything but. It was unanimously rejected by the easyJet board as “a low premium, highly conditional all-share offer”. Stick that in your pipe and smoke it.

Bigger than IAG>

Combined the two would have been capitalised at north of £8bn, making an enlarged Wizz-easyJet (Wizz-jet, anyone? easyWizz?) worth more than the Iberia and BA owner International Consolidated Airlines Group.

easyJet’s rejection of the low-ball amalgam will no doubt have been predicated on a self-help plan that is already well underway to carve out annual cost savings from the business of £500mln a year.

Demand seems to be slow in coming back – though that’s a problem for all of the world’s airlines. In the fourth quarter easyJet expects to be flying 57% of 2019 capacity, and up to 60% in the first quarter of 2022.

That’s not a pretty picture when you consider low-cost carriers often need their flying aluminium tubes to be full to the gunwales to make a profit.

Wizz, which focuses on central and eastern Europe rather than the holiday routes to the Med, appears to be faring a lot better.

Whether Wizz will be back with another tilt for easyJet, with a cash element and a juicy premium remains to be seen. easyJet may even catch the eye of private equity looking to splash the cash. That said, it doesn’t really fit the template.

It’s not an undervalued, asset-based, cash cow with a recurring revenue base that can be fixed or re-engineered. This is a cyclical business that is haemorrhaging money.

In other words, it would require a different breed of PE group to swoop in for the stricken airline. The market reaction said it all – the stock was down 11% and friendless.

While much of the decline is anticipatory of the dilution from the rights issue, investors are still not pricing in a bid premium as they did with the likes of Morrisons et al ahead of takeover approaches.

Airline stocks flying under a cloud:

In the meantime, all the airline stocks are currently flying under a cloud with traders fearing there may be a mass stampede to the ‘watering hole’ after the easyJet City fundraiser.

These are interesting times for easyJet and the wider airline industry, but no less complicated than they have been over the last 18 months with the Covid delta variant derailing the recovery and depressing economic growth. Should you be buying airline shares now? There’s an argument to say that much of the putative recovery has already been priced in, yet very little of said recovery is yet to materialise.

Like many investors, my backside will be covered in splinters sitting on the fence with this little conundrum.

[porsche1945] 09/9/2021 14:38

Tlobs and his special needs family are back from the adult learning centre!! Await his epic investing wisdom. Omg he is just brilliant value, check him out.

[gettingrichslow] 09/9/2021 14:38

If you take all the airlines that have ever existed and add up their profits and losses over all the years they existed, you get to a negative number. That tells you all you need to know.

[clocktower] 09/9/2021 14:27

Did not Sir Stelios Haji-Ioannu take a few hits previously having dropped his percentage in 2020 I seem to remember - but where will this leave him this time around?

[fishking1] 09/9/2021 14:16

This's what I'm gonna do with ?By selling a portion of my rights so that I can buy some of the new shares they've offered me, but without putting any extra cash in. The 'tail' disappears, but the body remains intact.

[diku] 09/9/2021 14:05

If it wasn't underwritten it would have fallen a lot further meaning market would get even more spooked...both parties confident high % would be taken up...probably institutional investors and large holders would have been consulted prior to public domain news...

[diku] 09/9/2021 13:59

Those US indexes are well due a correction of some sort over the coming months...it is artificially held up by FED QE juice and handful of tech heavies...so i can see it getting closer to 600p or lower...

[gettingrichslow] 09/9/2021 13:48

Vicky, yes but why would you, given you’ve just recently decided how much you wanted to invest. If you wanted to invest more you would have done so in the first place.

[loganair] 09/9/2021 13:45

What fees are the bankers charging Easyjet to fully underwrite the Rights Issue?

It seems to me the need to have the rights fully underwritten is a negative as it suggests Easyjet are worried about how many shares will be taken up if not underwritten.

[gettingrichslow] 09/9/2021 13:34

Cumnor, “The rights is fully underwritten-why?221; Because they are paid a big fee to take on the risk! Doesn’t mean it’s a good idea for a retail shareholder to take up their rights! I wouldn’t touch this with a barge-pole.

[vicky141] 09/9/2021 13:26

Hi, I am from Australia. I have invested Easyjet shares last week, could you please help me to understand if I am eligible to participate in the capital raise. Thanks

[givememymoneyback] 09/9/2021 13:24

Lol. Everyone on advfn is a non-entity, including you cumnor!

[cumnor] 09/9/2021 13:18

The number of non entities sputing their wisdom on here is mind boggling. The usual losers of course. The rights is fully underwritten-why? Name the ten biggest short haul carriers out of the UK and across Europe carrying tourists for the next ten years. This is great news-and from a solid position within the industry. Add in the take over offer, huge cost and productivity savings from the pandemic which will carry forward, the elimination of competitors and a timing of EZJ's choice-not the markets. It will be highly profitable end 22 and going forward.

[phillis] 09/9/2021 13:16

Tergifts

Tail swallow I.e. sell sufficient of your holding to buy your rights entitlement

[loganair] 09/9/2021 13:08

The easiest and quickest way for Wizz Air to expand is to buy out Easyjet who seem to me the weakest of the 3 main low cost carriers.

[srpactive] 09/9/2021 12:35

Well with the rights at 420p if I read it correct, the bid
surely must have been around that price or they would have put the
rights higher?

dyor