ASX : Virgin Blue in Trading Halt

[oz_mark]

...and again today

Shares in Virgin Blue Holdings Ltd have gone into a trading halt pending an announcement about a capital raising.

"The trading halt is necessary for Virgin Blue to make an announcement to the market in relation to a capital raising and to allow the institutional offer and placement component of the capital raising to take place in an orderly fashion," the company said in a statement on Monday.

Virgin Blue goes into a trading halt

 

[Nigelinoz]

So two weeks ago it was "the Board has not approved any such transaction ",it appears that the board has now approved it.
Perhaps one of the board members was on holiday two weeks ago and couldn't get to the meeting.

 

[oz_mark]

Snippets from The Australian

VIRGIN Blue today said it planned a $231.4 million fully underwritten capital raising to improve its liquidity and financial flexibility.
[...]
The airline will place shares at $0.20 each, representing a 31per cent discount to the last traded place of $0.29.
[..]
Included in the raising is a $21 million institutional placement and a 1-for-1 non-renounceable pro-rata entitlement offer to raise $210.4 million.

 

[jakeseven7]

Interesting report in the media today.
Virgin goes to Gulf for cash | The Australian



If it's true my money would be on Emirates as being the only airline with enough cash at the moment.

Apart from they have zero interest in DJ.

DJ is a tough ask for other airlines to invest in as they are such a mixed bag. Will be interesting to see with BG out the door, whether the new person will bite the bullet and try and clean up the company, some clear direction on what it is (and isn't) would really help. They are a bit all over the place - but I hope they can raise the cash relatively quickly and cheaply to see them through.

 

[codash1099]

From AAP via Yahoo7

The airline said its 25.5 per cent shareholder, Sir Richard Branson's Virgin Group, would support the capital raising.
Virgin Group would invest $61 million to $79.9 million in the airline by participating in the equity raising.
It has committed to subscribe for 35 per cent of the entitlement offer and also will sub-underwrite 20 per cent of the retail component of the offer, the airline said.
If no eligible retail shareholders take up their entitlement, Virgin Group's ownership level would increase to about 30.2 per cent.
The airline said it expects a net loss of $160 million to $165 million for the year to June 30, compared to net profit of $98 million in the prior financial year.

That loss would put a few people off investing.

 

[Standby]

From AAP via Yahoo7




That loss would put a few people off investing.

The loss is one thing .As an invertor with a few bob the main issues
are There doesnt appear to be good news on the horizon & such a raising will keep share values depressed with the discounted price plus when was the last dividend the y paid?..My Qantas shares may have tanked in but at least the dividend is reasonable & regular.
Airlines are an ordinary investment,although I did make a quick $ buying at 19Cents and selling when they popped above 30Cents briefly

Finally if anyone took the time to read the DJ Equity Raising presentation posted on the ASX I found the following amusing typo in the "Risk" area
of the slides

• Australia competes against Qantas..... (Missing a capital V me thinks)