EasyJet sets $1.65 billion stock sale, spurned takeover approach

EasyJet Plc plans to raise 1.2 billion pounds ($1.65 billion) from a share sale, and said it rejected an unsolicited takeover approach because it undervalues the company.

The U.K. airline also plans to raise $400 million in debt, providing it a buffer of cash to see it through a tentative return of leisure travel. 

The preliminary approach was all-stock and contained a low premium, EasyJet said Thursday in a statement. It said the suitor has confirmed it is no longer pursuing a bid.

EasyJet has raised more than 5.5 billion pounds in liquidity since the start of the pandemic as coronavirus shutdowns brought the global airline industry to its knees. The company, which has said it would continue to review its capital structure, plans to fly at about 57% of capacity during the fourth fiscal quarter.