Japan Airlines to raise $1.6b in share sale, restructure business amid pandemic pain

Photo: Japan Airlines' Facebook page

Japan Airlines Co Ltd on Friday said it would raise up to 168 billion yen ($1.62 billion) by selling new shares to shore up its finances as the COVID-19 pandemic hits air travel.

Airlines around the globe are struggling to ride out a pandemic that has cast a dark shadow across the global travel industry. Although Japan hasn’t been hit as hard as the United States and Europe, its travel industry is suffering.

“We intend to use the net proceeds from the issuance of new shares to restructure the JAL Group’s business structure in the post-COVID-19 era,” the airline said in a regulatory filing.

The airline said it planned to use 80 billion yen for investments to accelerate the reduction of carbon emissions, 15 billion yen to restructure for the post COVID-19 era, 5 billion yen to “respond to social needs” after COVID, and the remainder to pay down debt.

JAL said it would sell up as many as 91 million new shares to domestic and international investors, and additional 9.1 million shares in a third-party allotment to its Japanese underwriter. Shares of JAL closed little changed at 1,843 yen in Tokyo before the announcement.

Reuters

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

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Singapore Reporter/s

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).

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

  • 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.