Not even midday yet and momentum is strong. $2.50 looking good in 1 week on speculation of VAH sale. $2.05 was one of the most obvious signs of a turn around I've ever seen.
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Not even midday yet and momentum is strong. $2.50 looking good in 1 week on speculation of VAH sale. $2.05 was one of the most obvious signs of a turn around I've ever seen.
Probably reduces the likelihood that they'd need the loan from AIR too.
So @ 30c, Air NZ would get $275M for their $450M stake and they would still have $100M loan to VAH.
I would imagine the $100M loan is worth more to a non share holder than a significant shareholder. A significant shareholder would never want to send a company to the wall and would likely take stock options. A competitor who is owed debt would however push pretty hard to get its money back so I don't see a problem with the $100M loan, its a cash investment.
All helpful to a rather battered AIR SP of late. I jumped back in picking up the rest of the holdings I had originally yesterday and first thing this morning. Paid a bit more than I anticipated but wanted to hold off and really see a turn around after such a turbulent ride of late.
Pleased to see this playing out with more positive aspect although anticipating some profit takers now it's jumping up.
Get some positive news on AIR stake in VAH and think 2.45 is achievable ST, believe that news is not far off..all going to plan.
Interesting move and does AIR no harm in terms of its prospects of selling.
Interestingly this stake is taken right at consensus view of asset backing http://www.4-traders.com/VIRGIN-AUST...65/financials/ with no value ascribed to VAH's IP or goodwill...hardly surprising seeing as they're currently unprofitable. Consensus broker view is considerably higher though and could be enhanced by this deal with its implications around growth going forward. Taking into account the strategic value of AIR's stake I don't think 40 cps is completly out of the question for AIR's shares and hopefully any deal is nice and clean and involves a complete sale and repayment of any shareholder loans previously advanced.
So it looks that HNA would only need 7% of VAH shares more, which I assume would come from Air NZ. Would the capital raised be used pay back AirNZ's loan to VAH?
......cant believe anyone would be selling at these levels with such potential news about to be released to the market, any day soon? Might be worth 20 or 30c to the SP........IMHO.