Japan’s ANA plans share issue after board meeting as early as this week

All Nippon Airways Co. (ANA) aircraft stand parked at Haneda Airport in Tokyo, Japan, on Wednesday, April 26, 2017. Photographer: Tomohiro Ohsumi/Bloomberg

Japan’s ANA Holdings Inc plans to issue new shares following a board meeting as early as next week, two sources said, a move that would see it raise around $1.9 billion to bolster its balance sheet.

Japan’s biggest airline has picked Nomura Holdings and Goldman Sachs Group Inc as two of the joint global coordinators for its first share offering since 2012, said the sources, both of whom declined to be identified because the information was not public.

The issuance is expected to raise around 200 billion yen ($1.9 billion), one of the sources said.

No one was immediately available for comment at ANA outside of regular working hours.

The Nikkei newspaper reported in September that ANA was mulling a potential 200 billion yen share issuance.

ANA, like other airlines, is burning through cash to keep jets flying albeit with too few passengers. Though demand for domestic flights has recovered to about half of last year’s level, helped by government-subsidised travel, it is flying only a fraction of its usual international schedule.

It has forecast a record operating loss of $4.82 billion for the year to end-March and is temporarily transferring more than 400 workers to other companies. Other staff are being asked to take pay cuts or unpaid leave.

Domestic rival Japan Airlines Co Ltd also said earlier this month it would raise $1.8 billion in a share sale to strengthen its finances.

While Japan has avoided the worst of the pandemic, faring far better than the United States and Europe, it is now experiencing a surge in new daily infections. The nationwide tally hit a new high above 2,000 for the third straight day on Friday, according to domestic media.

Reuters

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In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

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  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.