Forum Archive Index - August 2001

["Peter" <pmaiden@xtra.co.nz>]

When AIR purchased the balance of Ansett they paid $744M odd in cash and it was stated that after the first payment Air NZ would make a second payment of Air NZ shares equal to 10.5% of the shares on issue at the time of completion, adjusted to take into account subsequent changes to the capital structure.

 

No date was given as to when the second payment was to be made but some referencewas made about 2 - 4 years time.

 

I take it that this arrangement still stands. I have not seen anything to say otherwise. As such does AIR still owe News Corporation the equivalent of 80 million AIR shares?

 

There was also an interesting article in The Dominion this morning that speculated that there would be a 2 for 1 rights issue at 25 cents to raise $380M. That along with the issue of 116 million new shares to get SIA up to 35% would give new capital of $500M. This has been a figure touted quite often over recent months. Maybe the story this morning has some credence.

 

Maybe Snoopy or some other enlightened person could make some comment about whether AIR still owes something for Ansett and if so whether it complicates any recapitalisation plans.

 

Cheers

 

Peter