The Qantas Group has announced the closing date of its share purchase plan (SPP) will be extended by two weeks.
The company said the extension to 5 August 2020 will ensure that all eligible shareholders have additional time to participate in the SPP, which it opened last month.
“At this stage, the impact of the lockdown and state border restrictions imposed in response to the recent COVID-19 outbreak in Victoria is not expected to have a materially adverse impact on the three-year recovery plan disclosed to the ASX on 25 June 2020,” Qantas said in a statement yesterday.
“Shareholders that have already applied for shares under the SPP are not required to re-submit their application form unless they wish to apply for additional shares up to a maximum application amount of $30,000 as referred to in the SPP booklet announced on 2 July 2020.
“All other terms of the SPP remain the same, including Qantas’ ability to scale back applications or raise a higher amount, in its absolute discretion if Qantas receives applications that exceed $500 million.”
As a result of the extension of the closing date, Qantas said the issue price for each new share under the SPP will be the lower of the issue price paid under the placement (being $3.65 per share, and the volume-weighted average price of shares traded on ASX during the five trading days up to, and including, the day on which the SPP is now scheduled to close less a 2.5 per cent discount, rounded down to the nearest cent.
Qantas has already ticked off the first part of its $1.9 billion equity raising, having completed a fully underwritten institutional share placement worth around $1.4 billion last month.
These moves are all part of the company’s three-year plan to accelerate its recovery from the COVID-19 crisis.
Featured image source: Qantas