Shares in Cimber Sterling tumbled 8.5% in trading yesterday, as the carrier announced it has adopted the proposals to increase share capital made by the board at the carrier's AGM and appointed a mergers and acquisitions specialist to its board.
Cimber Sterling announced Kåre Bo Stolt has been appointed as a new member of the company's board of directors. Kåre Stolt is an attorney-at-law and Senior Partner of Accura Advokatpartnerselskab, with a specialty in M&A, stock market issues and corporate law.
The airline adopted several proposals for authorisations made by the board at the carrier's AGM.
Among the AGM proposals were:
- Authorisation to increase the company's share capital in one or more issues of shares of up to a nominal amount of DKK136.5 million, each share having a nominal value of DKK1 through cash payment at market price and without pre-emption rights to the existing shareholders of the company; Authorisation valid until 31-Aug-2015;
- Authorisation to issue warrants in one or more issues with a right to subscribe for shares up to a nominal amount of DKK9.5 million corresponding to 9,499,999 shares, in the company without pre-emption rights to the other shareholders of the company at a price which may not be lower than the market price at the time of issuance of the warrants.
In mid-May-2011, the carrier announced it had launched a process aiming to ensure a long-term reinforcement of the capital base and strategic market position of the company. Cimber Sterling had already received positive indications of interest from a number of potential investors, both industrial and financial investors.
In late May-2011, the airline adjusted its full-year guidance for 2010/11. EBIT before special items is now expected to be a loss in the range of DKK190-200 million, as compared with the previous guidance of a DKK125-145 million loss.
Cimber has had several management and board changes over the past few months, as it struggles to turn around its performance.
Christian Nielsen resigned from the board on 03-Apr-2011, having only been elected to the post in Aug-2010. Stefan Vilner, formerly CCO at Sterling and CEO at Jetbird succeed Lars Bording, who left the carrier at the end of Apr-2011. CFO Henriette Schütze left the carrier at the end of Jan-2011.
Selected European airline share price movements (% change): 08-Jun-2011
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