Govt to increase capital of Croatia Airlines by 296 mln kuna (36 mln euro)

The new shares will be issued at a price of 10 kuna apiece and the government will pay for them in cash, Croatia Airlines said in a filing to the Zagreb bourse.

The shareholders of the airline will vote on the proposal on December 22. Following the capital increase, the company's equity capital will consist of 92,387,953 regular shares with a face value of 10 kuna each.

Croatia Airlines did not disclose the purpose of the capital increase. The company has been loss making in the past couple of years. Last month it said it has accepted an offer from Airbus to buy six new A220 aircraft in line with its post-Covid strategy to renew its feet and improve its business efficiency.

Croatia Airlines's shares last traded on October 14, ending flat at 35 kuna.

(1 euro=7.544 Croatian kuna)