Davis Polk advised the joint global coordinators in connection with the global offering of 140,000,000 shares of common stock of ANA HOLDINGS INC., which included over-allotment options of 18,250,000 shares. The global offering consisted of an offering in Japan and an international offering outside Japan pursuant to Rule 144A and Regulation S. The shares are listed on the Tokyo Stock Exchange. The aggregate proceeds of the global offering are approximately ¥305.2 billion with full exercise of the over-allotment options (approximately $2.9 billion).
ANA is one of the leading airline groups in the world, ranking 12th worldwide in terms of market capitalization, and one of the two largest domestic airline groups in Japan. The proceeds of the offering are expected to be used for investments, including the purchase of pre-pandemic orders of Boeing 787 Dreamliner jets. Similar to other major global airlines, ANA has implemented significant cost cuts to address the coronavirus-driven travel slump. However, while other airlines have been deferring plane deliveries, ANA opted to retain its 787 orders which it believes are more cost effective alternatives to large planes that may struggle to make money after the coronavirus crisis ends.
The Davis Polk corporate team included partner Jon Gray and associate Chihiro Sasaki. Counsel Alon Gurfinkel and associate Veronica Davis provided tax advice. Members of the Davis Polk team are based in the Tokyo and London offices.