ANA Shares Slump to 4-Month Low After CLSA Downgrades Stock

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ANA Holdings Inc., Japan’s largest carrier, fell to the lowest in four months in Tokyo trading after CLSA Ltd. downgraded the stock and said there’s a possibility the airline may need to sell new shares to fund aircraft purchase.

The stock declined 2.3 percent to 313 yen at the close of trading Thursday. CLSA cut the rating to sell from outperform, and reduced the price target to 300 yen from 380 yen.

ANA has conducted share sales once every three years since March 2006 and if the company sells 200 billion yen ($1.6 billion) in stock, it will dilute earnings per share 18 percent, CLSA analyst Naoto Saito said in the report. The Tokyo-based carrier could use the funds to finance the purchase of 15 aircraft announced in January, Saito said.

‘There is no need to sell shares and we have no plan to do it,’’ said Ryosei Nomura, a spokesman for ANA. “We have achieved solid financials for several years and our financial position has been substantially upgraded.”

In January, ANA agreed to purchase 15 planes from Boeing Co. and Airbus Group SE with a combined value of 259 billion yen as it increases flights from the Tokyo hub. The aircraft are for delivery between fiscal 2015 and 2021. Last year, the carrier ordered 70 aircraft.

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