In early 2020, Singapore Airlines Limited (Singapore Airlines) faced severe liquidity issues as the global pandemic halted its flights and uncertainty loomed. Erstwhile massive cash reserves were quickly running out, and the airline’s executives pondered how to save the company from insolvency. Singapore Airlines’ majority shareholder, Temasek Holdings Limited, agreed to subscribe to a massive capital-raising exercise of up to S$15 billion via a proposed rights offer and mandatory convertible bonds (MCBs). Although minority shareholders were not convinced that the rights issue would be a good investment in such uncertain times, they had to decide whether to vote for it and whether to subscribe to the rights issue and MCBs.
新加坡航空有限公司：在新冠肺炎危机期间进行配股 Singapore Airlines: A Rights Issue during the COVID-19 Crisis (Simplified Chinese version)
Emir Hrnjic
Product #:W33633
Supplier:Ivey/NUS
Discipline:Finance
Setting:Singapore, 2020
Industries:
Your Price:$10.54
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Learning Objectives
- 评估与供股相关的复杂性。
- 评估与MCB 相关的复杂性。
This case is designed for undergraduate- and graduate-level courses on corporate finance, investments, financial statement analysis, and corporate governance, dealing with the topic of raising capital through a rights issue as well as MCBs. This case provides a background for analyzing the proposed rights offer and MCBs of one of the world’s most recognizable airlines. After working through the case and assignment questions, students will be able to do the following:
- Assess the complexities related to a rights issue.
- Assess the complexities related to MCBs.