BA Pensions have published new service updates for APS & NAPS
The updates contain this important message regarding the forthcoming right issue by IAG. While ABAP cannot give any financial advice, it’s most important that anyone holding IAG shares pays attention to IAG shareholder communications via post or email. If you’re a shareholder and take no action, your shareholding will be diluted– as explained below.
“A message from IAG about its capital increase
It’s well known that the COVID-19 pandemic and associated government travel restrictions have had a significant impact on global passenger demand, and the aviation industry. As a result, IAG has announced that it will undertake a capital increase, subject to shareholder approval. This approval was granted by shareholders at IAG’s AGM on 8 September.
A capital increase is a way for companies to raise additional money. They do this by issuing current shareholders with the “right” to buy more shares in the same proportion to their existing shareholding at a discount to the current market price.
If you are an IAG shareholder you will have a number of options, including the ability to take up your rights in full and maintain the level of your current shareholding, or even buy more rights if you choose. Conversely you also have the ability to sell your rights, or any portion of them.
It is important for all shareholders to understand that although IAG is listed in London it is a Spanish company and the process is governed by Spanish regulations, with the result that if shareholders do not make a choice there is no automatic sale of rights at the end of the process (as is usual in the UK) and the shareholding is diluted.
All shareholders holding their shares as Crest Depositary Interests (or “CDIs”) – which is the standard form of ownership for UK holders of IAG shares – will receive information either by post or email about the capital increase and what they need to do to participate. It is their decision on how they wish to proceed, but it’s important that they read the Prospectus in full and understand the documents and the consequences of their decision.
Shareholders can also learn more about the process on IAG’s website: www.iairgroup.com.
Further information can also be obtained from Computershare by calling the helpline on: 0370 702 0110.”