AIZ (Air NZ) secures substantial stake in VBA

[Virgin Australia]

Re: NZ buys stake in DJ

.... it will help Virgin Blue in its track to become relevant to our AFF community with product upgrades.

Just you wait!

 

[oz_mark]

Re: NZ buys stake in DJ

Just you wait!

tease....

 

[dk4]

Sorry, but I think this is a sad day for Australian commercial aviation.

Instead of a strong international investor, with deep pockets, Virgin Blue will be left with nearly half of its registry filled by two organisations, that don't have the intent or funds to throw large amounts of capital at it.

(Virgin Group is in "Cash Cow" mode with its Australian airline investment, and the N.Z. government should not have bought the hype from NZ management about regional consolidation and its homeland value.)

I'm sure that the mood around Coward Street, during afternoon drinks today, will be very upbeat.

More unpredictable, will be what's happening in Singapore.

Again, I think it's a sad day for Australia.

 

[samh004]

I think I've seen this movie before

The points raised by pauly7, from the AFR, make a lot of sense, and if so, can't be a terribly good thing for the airline.

 

[medhead]

An automatic takeover provision applies if one party buys more than 19.99% of an ASX listed company other than under the 3 per cent creep rule every 6 months.

I thought there was also a related party provision that had a lower threshold to allow all shareholders a say for a stake that could be used to block the compulsory acquisition provisions. e.g. Selling 10% to you mate, which then prevents the rest of the shareholders being able to accept a better offer from a third party, as the third party can't get control.

Of course, I recall discussion of this during the xsrata takeover of MIM, so it was some time ago.

 

[cove]

Well if two or more parties act together then they are both bound by the one 19.99% limit provision.So if AIZ had an associate and they together bought 20% or more in total then there would be a need for the rest of the shareholders to get offered the same highest price paid.
That is unlikely based on what has been said publicly by AIZ.
It was good to see that there was no leakage of the buy in from the Foreign Investment Review Board based on the share price being very stable pre announcement.

 

[oz_mark]

Now they have to sell some....

Air New Zealand has been forced to reduce its strategic stake in Virgin Blue because its holdings breach foreign-ownership restrictions in Australia’s second-largest airline.

The New Zealand airline bought a 14.99 per cent stake in Virgin Blue last month and promised that it would not be launching a takeover bid for the airline.

Air New Zealand forced to sell down Virgin Blue stake

 

[pauly7]

Whoopsies! Poor old Air NZ