(Reuters) – Expedia Group Inc said on Thursday it was raising $3.2 billion in fresh capital to boost its liquidity, in an effort to ride out a coronavirus-driven collapse in travel demand.
The company also named Vice Chairman Peter Kern as its chief executive officer and said it would abandon its dividend, implement furloughs and reduce work-week programs to save cash.
Shares of Expedia, which have declined about 43% this year, rose nearly 3% before the bell.
The online travel group said private equity firms Silver Lake Partners and Apollo Global Management Inc would invest about $1.2 billion in the company and would have board representation upon the closing of the deal in May.
Expedia will also raise about $2 billion in new debt.
Travel companies around the world are rushing to shore up finances after a steep fall in demand due to travel restrictions imposed to curb the spread of the coronavirus, which has infected more than 2.6 million people globally.
(Reporting by Ankit Ajmera in Bengaluru; Editing by Shailesh Kuber, Aditya Soni)