ANA seeks JPY 200bn: Nikkei

ANA Holdings is opening up its equity base via a public offering worth JPY 200.00 billion (USD 1.89 billion) to support itself amid continued low demand for air travel due to the coronavirus pandemic, the Nikkei reported. The capital increase, if announced, would be among the top 20 deals targeting a company based in Japan signed off so far this calendar year, according to Zephyr, the M&A database published by Bureau van Dijk. Zephyr shows 479 transactions targeting companies operating in the air transportation sector have been announced in 2020 to date. Singapore Airlines announced the sector’s largest of the year so far as it completed a rights issue worth USD 3.79 billion. The company also revealed the fifth-biggest deal as it raised USD 2.49 billion via a sale of mandatory convertible bonds to help it come out of the pandemic intact. ANA said the negative impact of Covid-19, and the resulting travel restrictions, which have led to the suspension of select flights, have continued to weigh on its income and balance sheet. The group’s operating revenue for the three months ended 30th June 2020 slumped to JPY 121.60 billion (Q1 2019: JPY 500.50 billion). Meanwhile, a net profit attributable to shareholders of JPY 11.40 billion in Q1 2019 turned to a loss of JPY 108.80 billion in Q1 2020. Chief of finance, Ichiro Fukuzawa, said: “Against this backdrop, we raised our efforts to minimise both variable and fixed expenses by scaling down our operations and personnel costs. “As a result, expenses for the group were reduced by more than JPY 200.00 billion from the previous year.” He added the company “aggressively worked to offset lost revenue by catering to the increased demand for international cargo transportation by arranging many non-scheduled flights and utilising large freighter aircrafts”. However, it was “unable to offset the unprecedented impact of Covid-19 and ended with a large quarterly loss”. © Zephus Ltd
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