AIR - Air NZ.

[workingdad]

Roger is smarter than me but as they equity account the investment then the profit/loss will be their holding % of VAH 's profit/loss for the year. The investment at this stage is a capital one.The year they sell will give a capital profit/loss on the original investment cost.

I see the announcement states:
"The share placement is subject to and will take place afterreceipt by HNA of regulatory approvals from Chinese authorities" This is a given I presume.
"Strategic alliance will be subject to ACCC authorisation,regulatory approvals from chinese authorities and other commercial conditionsprecedent" ACCC authorisation shouldnt be an issue but not sure about the other commercial conditions..... I guess the heads of agreement aspect allows for these to be negotiated further perhaps.

[babymonster]

Judging from the Aussie news, it's not that good for air

[workingdad]

Judging from the Aussie news, it's not that good for air

Good morning AIR, what sort of mood are we in today?

It's mixed, some articles are reporting good for AIR, some are reporting bad. All I know is I have some pretty tight stops in place so if they get triggered I will sit it out for a few days again.

[Raz]

Good morning AIR, what sort of mood are we in today?

It's mixed, some articles are reporting good for AIR, some are reporting bad. All I know is I have some pretty tight stops in place so if they get triggered I will sit it out for a few days again.

Sounds smart:-)

[kiwichick]

How can Virgin dilute existing shares? I guess I just don't understand business very well, but I believed when you listed a company, it is broken up into a certain number of shares. Those shares can be sold and traded, but the overall number never increased unless by way of a share split - is this incorrect? If so, then I can't understand why anyone would ever buy a share of a company if the value of those shares could be effectively diluted overnight (which seems to have happened with this HNA sale, diluting AirNZ's share of the company from 26% down to 22.5% according to the NZ Herald this morning).

[Biscuit]

How can Virgin dilute existing shares? I guess I just don't understand business very well, but I believed when you listed a company, it is broken up into a certain number of shares. Those shares can be sold and traded, but the overall number never increased unless by way of a share split - is this incorrect? If so, then I can't understand why anyone would ever buy a share of a company if the value of those shares could be effectively diluted overnight (which seems to have happened with this HNA sale, diluting AirNZ's share of the company from 26% down to 22.5% according to the NZ Herald this morning).

The owners of the new shares will pay for them - put equity into the company - so the company is effectively worth more and arguably no one loses

[workingdad]

Sounds smart:-)

Might not be needed. Trades through at 2.28 this morning so the battle of bears and bulls enters another day....

[Raz]

Might not be needed. Trades through at 2.28 this morning so the battle of bears and bulls enters another day....

Wells we wills see, happy to start the day out..too many mixed signals. It may be a long day with many chapters....

[Balance]

Beauty of the market - the Ozzie bears and the Kiwi bulls.

http://www.nbr.co.nz/article/air-nzs...stake-b-189758

[workingdad]

Wells we wills see, happy to start the day out..too many mixed signals. It may be a long day with many chapters....

And that's probably the only sure thing 😜