Shareholders back capital raise at Greece’s Aegean Airlines

Aegean Airlines (A3, Athens Int’l) has confirmed the terms of its upcoming private investor share capital increase of at least EUR60 million euros (USD71 million), a measure that is necessary in order for the privately-owned flag carrier to receive a Greek state grant of EUR120 million (USD142 million), aid which European Union regulators approved in late December. At a remotely held extraordinary general meeting on March 12, which 82 shareholders attended – representing 51,161,992 shares and votes out of the total 71,417,100 (71.64% of the paid-up share capital) – shareholders backed the increase in the company’s capital stock. Once the capital increase is implemented, the state must provide its support to the company within 20 days. Aegean Airlines posted an after-tax full-year loss for 2020 of EUR230 million (USD272 million), according to the Greek newspaper I Kathimerini. At the meeting, 50,955,699 shareholder votes were cast in favour and 206,293 against the first item on the agenda, on granting power to the board of directors to increase the share capital and to restrict or abolish the shareholders’ pre-emption rights. The same proportion of shareholders also voted in favour of giving the board the power to issue share warrants to the Greek state. The third and final item resolved, with 49,016,626 votes in favour and 2,145,366 against, to alter the articles of association of the company regarding the shareholders’ right to undertake new shares; the right of the board to elect a chairman and up to two vice-chairmen; and the competence and minimum number of members for a general meeting.