Originally Posted by
Roger
I'm only thinking straight off the cuff here and out loud, (which is usually a dangerous thing to do LOL), but first up its important to note this is imply a heads of agreement at this stage.
Not only would it probably require the necessary approvals from Canberra but I would have thought it would also be something that would need ratification from shareholders by way of special resolution requiring 75% approval i.e. AIR's agreement. I think the lack of premium to NTA reflects the weakness of VAH's balance sheet, its present gearing level of nearly 6:1 debt equity is not something any airline should be proud of and its presently approximately breaking even when most airlines are doing well. Whether AIR can execute a transaction at a premium to that price now there's been that line drawn in the sand for their strategic stake now the balance sheet is somewhat strengthened remains to be seen.