Elementary My Dear Watson
Quote:
Originally Posted by
Paper Tiger
...see AIR announcement for details...
Quote:
Originally Posted by
workingdad
I don't understand that PT. wouldn't a sale of a percentage of holdings be on current number of shares not based on a possibility (or probability whichever way you look at it) of new issue yet to be approved?
I appreciate the time you take to offer insight on the various posts you do. It does benefit us lesser experienced ones balancing out various perspectives.
Link to Announcement
from Announcement:
"Today, Air New Zealand (NZX: AIR) is pleased to advise that it has entered into a Sale & Purchase Agreement (the Agreement) with Nanshan Group in respect of its stake in Virgin Australia. Under the Agreement, Air New Zealand will sell shares held in Virgin Australia at A$0.33 per share. Following the sale, Nanshan Group will have a shareholding of approximately 19.98% in Virgin Australia1." << see that 1 ?
from Announcement
"1 Based on Virgin Australia’s expected issued capital outstanding following the HNA Group equity investment as announced by Virgin Australia on 31 May 2016."
Best Wishes
Paper Tiger
The One Little Secret that the Professionals Do Not Want YOU To Know
Quote:
Originally Posted by
workingdad
Thank you. I read it twice and still didn't put it together.... From Alzheimer's meds to a stroke of some sort obviously.
Cheers
Always, always, always, always:
Carefully read the PDFs linked in the announcement, save them to your hard drive for later retrieval if you think they contain important information (and save them to your hard drive even if you do not but you have the free space).
Probably get drummed out of the Cubs for revealing this.:(
Best Wishes
Paper Tiger
Prickles = Hedgehog or Echidna, Stripes = Tiger
Quote:
Originally Posted by
Roger
http://www.smh.com.au/business/aviat...09-gpfw5q.html
Just a really quick back of the envelope calculation based on a press article which is always an incredibly dangerous thing to do. FACT - Book value of AIR's stake in VAH as at 30 June 2015 was $360m Kiwi. Going off memory this had already been written down by some $50m Kiwi (IIRC) in previous years.
Sale value, SPECULATION (subject to regulatory consents) as reported in the Australian press $232m I presume $A = approx. $250m Kiwi and they've sold roughly 19.9 / 22.5 (their stake assuming HNA issue proceeds) = 88.44% of their stake sold so if they can sell the rest at the same price their stake is worth $250m Kiwi / 0.8844 = $282.7m Kiwi less transaction costs and advisory fees. So a loss on book value as at 30 June 2015 of circa $77.3m plus transaction costs to be booked in the financial year in which the sale goes unconditional. (DYOR, not to be considered professional advice or a recommendation and I am certain the resident prickly cat will have a different view).
I hardly like to bring this up given the above closing remark but:
It is 19.98% of the expanded VAH that has gone under the hammer.
AIR have just sold approx 807.7M shares at $0.33 which is A$266.5M
AIR had 913,503,208 VAH shares and if they sell the lot at $0.33 that would be A$301.5M
As Always Best Wishes
Paper Tiger