Maybe not. Based on current market value of $A0.3675 AIR's stake is valued at $A335.8m converts at .8972 = $374.27m Kiwi = 33.33 cps.
Singapore made an interesting move with a counter party in respect of some arrangement they had with them today and settled at just on 46 cps going off memory so there's potential for as much as $468m or about 42 cps.
On top of that I still have AIR earning 64 cps this year and they have only distributed 10 cps so far.
Further still, there's the possibility a deal would include the new shareholder taking over AIR's shareholder loan to VAH just made, another 13 cps.
I'm not disputing the amount of available cash they may have on hand, it is a very interesting time.
If all goes well I don't see the bean counters giving it all back, it doesn't make business sense to me. A healthy divi.. Yes, 35c I would be surprised. Let's wait and see.
Whoever (if it happens) acquires AIR share of Virgin will need to stump up ever more than before when the inevitable recapitalisation/refinancing of Virgin takes place (soon)
Assessing future commitments might put Singapore or Etiad off but then again it raises the possibility of a full takeover by either of them or some other keen watcher
Last edited by winner69; 07-04-2016 at 08:27 PM.
At the top of every bubble, everyone is convinced it's not yet a bubble.
What's that old clich้...oh yes that's the one, Don't bite the hand that feeds you. I know it seems harsh but it sends an important signal that AIR will not be messed with in terms of former employees making baseless or vexatious claims. AIR seem pretty determined to clear out the non-performing dead wood don't they.
Originally Posted by winner69
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