South Korean budget carrier T’way Air plans to raise 200bn Korean won ($154 million) through a combination of a share sale and perpetual bond issuance, South Korean media reported.
According to reports, the company’s board on August 7, approved a 110bn won ($79 million) third-party paid-in capital increase, a capital reduction without compensation, and the issuance of perpetual bonds as part of efforts to improve its financial stability.
The capital raise will be backed by DaeMyung Sono Group, which is expected to participate in the rights offering by purchasing new shares at market value. The move is aimed at limiting equity dilution, particularly for minority shareholders.
T’way also plans to conduct a non-compensatory capital reduction by lowering the par value of its common shares from 500 won ($0.36) to 100 won ($0.072).
The measure is intended to strengthen the company’s capital adequacy ratio, the reports said.