Norwegian Air's shareholders backs share sale rights issue

Norwegian Air's shareholders endorsed on Tuesday the loss-making airline's plan for a deeply discounted cash call to help fill its coffers, Chairman Bjoern Kise said. Norwegian Air announced on Jan. 29 it would raise 3 billion Norwegian crowns ($348 million) in a rights issue, just days after British Airways owner IAG ruled out a bid for the budget carrier.

More than 99 per cent of shares represented at an extraordinary general meeting of shareholders on Tuesday backed the proposal, company officials said. In the rights issue, Norwegian's owners will get two subscription rights to buy shares for every share they currently own, and new shares will be sold at 33 crowns each, compared with Monday's closing price of 93 crowns.