British Airways owner IAG in 2.7-billion-euro rights issue

LONDON (Reuters) – IAG will raise 2.741 billion euros through a fully underwritten, heavily discounted capital increase, the owner of British Airways said on Thursday.

IAG said it would issue 2.97 billion new shares at 0.92 euros, representing a 36% discount to the theoretical ex-rights price based on the closing price on Wednesday.

For each existing share of IAG, its holder is entitled to one subscription right and 2 subscription rights are required to subscribe for 3 new shares.

The equity raising, to which its biggest shareholder Qatar Airways subscribed for its pro-rata entitlement, was announced in July and approved by shareholders on September 8.

(Reporting by Sarah Young; editing by Jason Neely)