Not even midday yet and momentum is strong. $2.50 looking good in 1 week on speculation of VAH sale. $2.05 was one of the most obvious signs of a turn around I've ever seen.
so air nz holding has been diluted? by the placement.
if they got 30c for there holding would roughly worth about 20 odd cents per share of the top of my head and they may want some it for new aircraft? and a small special div
Would take AIR stake below 20% - might make it easier to hock off
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
So @ 30c, Air NZ would get $275M for their $450M stake and they would still have $100M loan to VAH.
I would imagine the $100M loan is worth more to a non share holder than a significant shareholder. A significant shareholder would never want to send a company to the wall and would likely take stock options. A competitor who is owed debt would however push pretty hard to get its money back so I don't see a problem with the $100M loan, its a cash investment.
All helpful to a rather battered AIR SP of late. I jumped back in picking up the rest of the holdings I had originally yesterday and first thing this morning. Paid a bit more than I anticipated but wanted to hold off and really see a turn around after such a turbulent ride of late.
Pleased to see this playing out with more positive aspect although anticipating some profit takers now it's jumping up.
looked like it was way oversold yesterday at 2.05 and still is today according to some metrics, and on the weekly - needs to clear 2.15 for a shot at 2.30 next week according to the crystal ball lol
Interesting move and does AIR no harm in terms of its prospects of selling.
Interestingly this stake is taken right at consensus view of asset backing http://www.4-traders.com/VIRGIN-AUST...65/financials/ with no value ascribed to VAH's IP or goodwill...hardly surprising seeing as they're currently unprofitable. Consensus broker view is considerably higher though and could be enhanced by this deal with its implications around growth going forward. Taking into account the strategic value of AIR's stake I don't think 40 cps is completly out of the question for AIR's shares and hopefully any deal is nice and clean and involves a complete sale and repayment of any shareholder loans previously advanced.
So it looks that HNA would only need 7% of VAH shares more, which I assume would come from Air NZ. Would the capital raised be used pay back AirNZ's loan to VAH?
......cant believe anyone would be selling at these levels with such potential news about to be released to the market, any day soon? Might be worth 20 or 30c to the SP........IMHO.
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Originally Posted by bull....
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