SIA to hold EGM for shareholder approval on rights issue

It aims to collect $3.5b in aggregate principal amount of mandatory convertible bonds.

Singapore Airlines (SIA) is set to hold its electronic extraordinary general meeting (EGM) on 30 April at 11:30am to gain shareholder approval for its proposed rights issue and issuance of its additional mandatory convertible bonds and conversion shares, an SGX filing revealed.

The renounceable rights issue will release about 1.78b new ordinary shares for $3 apiece and aims to garner about $3.5b in aggregate principal amount of mandatory convertible bonds (rights MCBs) in the denomination of $1 apiece.

Shareholders will also vote on the proposed issuance of additional mandatory convertible bonds and conversion shares, where they aim to collect $6.2b. Additional MCBs are to be convertible into new shares at a conversion price yet to be determined by SIA’s directors.

Such proposals will aid SIA in weathering the pandemic storm as it barred tourist movements.