Singapore Airlines shareholders to vote on mammoth cash call at April 30 virtual EGM

THE extraordinary general meeting (EGM) for Singapore Airlines (SIA) shareholders to vote on its S$15 billion debt and equity capital raising will take place on April 30 at 11.30am by electronic means.

The flag carrier in March announced the massive cash call, backed by Temasek Holdings, to tide it over the coronavirus pandemic that has decimated global air travel.

Shareholders will be able to either watch the EGM proceedings via a live webcast or listen in via a live audio feed. They can also submit questions in advance and/or vote by proxy at the meeting.

No shareholders will be allowed to physically attend, due to the current Covid-19 restriction orders in Singapore, SIA said on Wednesday.

Those who wish to tune in to the webcast on their mobile phones, tablets or computers or the audio feed via telephone, must preregister by 11.30am on April 27 at singaporeair.com/home/shareholder-registration.

Shareholders who wish to submit questions related to the EGM resolutions must do so by 11.30am on April 27. This can be done via the preregistration website, in hard copy sent in person or by post, or by email to gpe@mncsingapore.com.

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The company will address substantial questions relating to the resolutions either before or during the EGM.

Shareholders will not be able to ask questions during the live webcast and audio feed. Therefore, they need to preregister their participation so as to submit any questions in advance.

They also cannot vote online on the resolutions. Instead, if they wish to exercise their votes, they must submit a proxy form - by 11.30am on April 27 - to appoint the meeting chairman to vote on their behalf.

The proposed renounceable rights issue comprises a three-for-two issue of up to 1.78 billion shares to raise S$5.3 billion and an offering of up to S$3.5 billion worth of 10-year mandatory convertible bonds (MCBs).

SIA has received in-principle approval from the Singapore Exchange for this.

DBS Bank is the sole financial adviser for the rights issue, while the joint lead managers are DBS Bank and Morgan Stanley Asia (Singapore), SIA said in another filing on Wednesday.

Subject to shareholder approval, the register of members and the share transfer books will be closed at 5pm on May 8 for the purpose of determining the provisional allotments of the shares and MCBs under the rights issue.

Meanwhile, SIA's cash call proposed in March also includes an additional issue of up to S$6.2 billion in additional MCBs on similar terms and to be offered to shareholders via one or more rights issues down the line. This could take place within 15 months of being approved by shareholders.

Both the rights issue and the additional issue will be tabled for shareholders' approval at the EGM, which will be conducted by SIA chairman Peter Seah and chief executive Goh Choon Phong.

SIA shares rose S$0.14 or 2.2 per cent to trade at S$6.39 as at 9.14am on Wednesday.