Air NZ finalises Hazelton takeover

By Phil Boeyen, ShareChat Business News Editor

Wednesday 21st March 2001

Air New Zealand-owned (NZSE: AIRVA) Ansett Australia is planning to exercise compulsory acquisition of the rest of the shares in Hazelton Airlines after lifting its stake above 90%.

Air New Zealand says its Australian carrier plans to pay shareholders who have already accepted its $1.60 offer this week, while payment to remaining shareholders will be made within six weeks.

The takeover of the airline will cap off a battle for ownership with rival Qantas, which eventually pulled out of the race after it failed to qualm regulatory fears over competition.

Ansett too was initially turned down but it hung on for the ride, continually meeting with the Australian Competition and Consumer Commission in an effort to strike an acceptable takeover deal.

Air New Zealand CEO Gary Toomey says the company is delighted it can now move to full ownership of Hazelton.

"Ansett has more than a seven-year history as an established Hazelton partner. We look forward to building on that history in support of our commitment to regional air services in NSW and to a strengthened Hazelton Airlines.

"The acquisition of Hazelton is an important part of the Ansett-Air New Zealand Group's growth strategy - to build strong networks in both Australia and New Zealand.

Mr Toomey says regional networks like Hazelton provide connections into Ansett and Air New Zealand's domestic main trunk routes and international services.

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