[FONT="]Air New Zealand has actively engaged with the Crown as the Company has continued to assess its longer-term capital structure and funding needs. Air New Zealand has recently reconfirmed to the Crown its intention to complete an equity capital raise before 30 June 2021.
Given the critical role the Company has in New Zealand’s economy and society, the Crown has, in that context, confirmed in a letter to the Air New Zealand Chairman received today its longstanding commitment to maintaining a majority shareholding in Air New Zealand. This letter also confirmed that, subject to Cabinet being satisfied with the terms of Air New Zealand’s proposed equity capital raise, it would participate in that equity capital raise in order to maintain a majority shareholding in Air New Zealand.[/FONT] Ends.
Well, that's a surprise, isn't it? Who would have thought that AIR might need more capital?
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"Prediction is very difficult, especially about the future" (Niels Bohr)
possible opportunity at some date for future profits but the SHAS investor has surely kept this bird up in the AIR long past the date where it PL say its SP should be flying high.
SHAS investors perhaps thought the gates to the cloudy islands would be open by now.
There appears to be no innovative solutions coming from the Finance Minister and treasury even thought MR O indicated he would if given the power move beyond standard tools for asset purchases.
Capital raise imo nz govt loan converted to equity circa 900m, close to 900 m from the minorities. My guess 50 cents per share will be the price. Unfortunately huge dilution for shareholders who do not participate. Then the "prop up that isn't a prop up" aka public money used for cargo support will be withdrawn and the actual cash raises from minorities used. That will be gone by late next calendar year. Really this should have gone into receivership and the bones picked up by government rather than paying for the bloated exec and pilots.
No dividends look possible for imo 5 years min. Interesting to know cost of maint(variuos A thru D checks and crew re train)to get the birds back in the air, if ever.
Greg Foran the other day warned that things might not be back to pre Covid level's for a full decade !!
That's all the warning any reasonably intelligent investor should need so there's no need for me to be barking warnings when the CEO already has but in case anyone wants to know my opinion I see very, very little possibility of a profit in the foreseeable future and I foresee the likelihood of the vast majority of the capital about to be injected being eaten away in due course with losses as being almost certain. A prudent investor might like to ponder if the pending capital raise will be the only one or the first of several ?
More food for thought. Are people injecting capital shortly investors or are they ostensibly donating welfare payments to maintain critically important transport infrastructure ?
Last edited by Beagle; 12-02-2021 at 11:28 AM.
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
Yes but has a 600m subsidy to do it. Take that away and each flight is a massive loser. Go look at the load factors. Horrifying.I bet they will start, if not already doing it reclassifying flights as pure cargo and this take out of load factor calls. Only prob is the planes are not cargo ac so fly well under MAUW.
Originally Posted by Sideshow Bob
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