EasyJet Plc, Europe's second largest no frills airline, sold as much as 277 million...
EasyJet Plc, Europe's second largest no frills airline, sold as much as 277 million pounds ($427 million) in stock to fund its takeover of rival Go Fly Ltd.
Current investors bought about 103.9 million of the 104.4 million shares in a 265 pence-a-share rights offer, the airline said in a Regulatory News Service statement. Underwriters sold the remaining 513,348 shares at yesterday's market price of 371p a share, it said in a separate RNS statement.
The share sale will help finance the 400 million pound purchase of Go Fly from 3i Group Plc, allowing EasyJet to overtake Ryanair Holdings Plc as Europe's biggest no frills airline. EasyJet also has an option to buy British Airways Plc's unprofitable German unit DBA.
Credit Suisse First Boston Ltd. was the adviser while Credit Suisse Group, UBS AG and Salomon Brothers UK Equity Ltd. are underwriters, EasyJet said.