ANA in fundraising talks: Nikkei

Japan-headquartered airline ANA has opened discussions over a possible JPY 500.00 billion (USD 4.68 billion) fundraising, according to the Nikkei.

Without identifying its sources, the paper said the banking arms of Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group, and Mizuho Financial Group are among the potential investors.

Nikkei noted that the company is also requesting an extension to its subordinated loans from private banks and the Development Bank of Japan due to an expected decline in passenger demand following the global coronavirus pandemic.

No official statement on the matter has been made as yet.

The air travel industry is one of the most significantly impacted by the Covid-19 outbreak as social distancing measures have resulted in widespread and considerable travel restrictions, leading to a sizeable drop in demand.

Interestingly, this has led to a significant increase in both the volume and value of dealmaking targeting scheduled passenger air transportation companies in the year to date, according to Zephyr, the M&A database published by Bureau van Dijk.

Zephyr shows 404 such transactions worth an aggregate USD 48.18 billion have been signed off since the start of 2020, compared to the 228 valued at USD 16.50 billion which were announced over the corresponding timeframe of 2019.

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The same pattern is evident when compared to the year-to-date periods of 2018 (193 worth USD 6.97 billion), 2017 (214 at USD 10.47 billion), 2016 (335 at USD 12.82 billion) and 2015 (218 at USD 17.38 billion).

Of those signed off in 2020 so far, the largest is worth USD 5.96 billion and took the form of an institutional buyout as Bain Capital and Future Fund Board of Guardians agreed to acquire Virgin Australia Holdings out of administration back in June.

Other companies in the industry to have been targeted in the year to date include Singapore Airlines, Cathay Pacific and Southwest Airlines.

© Zephus Ltd

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