© Reuters. FILE PHOTO: The first Air France Airbus A350 prepares to take off after a ceremony at the aircraft builder’s headquarters in Colomiers near Toulouse, France, September 27, 2019. REUTERS/Regis Duvignau
PARIS (Reuters) – Air France-KLM said on Wednesday it was offering subordinated bonds convertible into new shares for 300 million euros ($312.09 million), sending its shares plummeting.
The bonds, which can also be exchanged with existing Air France shares, will be offered through a placement to qualified investors, the airline said.
Proceeds will be used to repay bonds held by the French state, it said, adding that shipping company and existing Air France investor CMA CGM, which owns a 9% stake, had expressed the intention to participate to the placement pro-rata to its current shareholding.
“The company is not aware of any subscription intention from its other main shareholders,” it said.
($1 = 0.9613 euros)
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