T'way Air announced on the 7th that it would proceed with a capital increase of 200 billion won to stabilize its financial structure.
T'way Air held a board meeting that day and approved three agenda items: ▲ allocation of new shares to a third party ▲ capital reduction without compensation ▲ issuance of perpetual bonds.
The scale of the capital increase is 110 billion won, with the number of newly issued common shares being 56,788,849 shares, and the issue price being 1,937 won per share. The third-party allocation recipient is Daemyung Sonogroup, which recently acquired T'way Air, and Sonointernational (46,463,604 shares) and Sonosquare (1,325,245 shares) will be participating.
A T'way Air official said, "Generally, the allocation of new shares to a third party is issued at a price discounted by up to 10% compared to the market price, which raises concerns about the dilution of existing shareholders' equity, but T'way Air will proceed with the capital increase based on market prices without any discount to protect the rights of existing shareholders."
A perpetual bond of 90 billion won will also be issued. Issuing perpetual bonds, categorized as capital in accounting, can reduce debt liabilities while achieving the effect of capital expansion.
It will also carry out a capital reduction through a decrease in face value from 500 won to 100 won. The plan is to reduce paid-in capital and improve the capital impairment ratio. This will not affect the number or equity ratio of existing shareholders.
A T'way Air official noted, "This decision was made with a priority given to establishing a foundation for T'way Air's continuous growth and the interests of existing shareholders," adding, "We will also repay the trust of shareholders and the market through transparent information disclosure and responsible management in the future."