Aegean Airlines Considers Repurchasing Warrants from Greek Government

In a recent development, Aegean Airlines (A3, Athens) has received notification from the Greek government expressing its intent to exercise warrants acquired in 2021 as part of the airline’s COVID-19 bailout. The government, having received approval from the European Commission for a EUR120 million grant to Aegean Airlines, is now looking to exercise its rights granted through warrants.

Aegean Airlines, in a statement released on November 6, confirmed that the Greek government conveyed its intention on November 3. The warrants, a condition of the bailout, give the government the right to purchase the airline’s shares at the same price as the capital raise, which occurred at EUR3.20 (USD3.42) per share.

The exercise period for the warrants spans from July 2, 2023, to July 3, 2026, with the potential acquisition of new shares by the Greek state representing 10.3% of the company’s share capital. This move would involve a payment of EUR33.2 million (USD35.5 million), diluting the stakes of existing private shareholders.

Aegean Airlines has a 60-day window to respond to the government’s notice, indicating whether it intends to repurchase the warrants by paying the difference in their current value. The proposed buyback amounts to approximately EUR85.4 million (USD91.3 million) for all warrants. The airline’s shareholders are set to convene soon to discuss this significant decision.

Eftychis Vassilakis, President of Aegean, expressed support for repurchasing the warrants, stating, “We have repeatedly stated that Aegean has both the liquidity and the funds to buy back the warrants.” He emphasized the company’s commitment to emerging stronger from the pandemic and thanked the state for its support, pledging continued dedication to growth, investments, and contributing to the economy and infrastructure. The final decision will be made after the shareholders’ meeting.