VAH share trading halt-cash raising

[Standby]

On the ASX,VA announce $350M ProRata Accelerated Non-Renounceable Entitlement Offer.
On the back of aircraft Sale and lease back + the 80M line of credit announced in the EOY statements.
Multiple $$ raisings would be a concern in a business that didnt have strong conerstone investors NZ/SQ/EY and Dickie B

 

[markis10]

On the ASX,VA announce $350M ProRata Accelerated Non-Renounceable Entitlement Offer.
On the back of aircraft Sale and lease back + the 80M line of credit announced in the EOY statements.
Multiple $$ raisings would be a concern in a business that didnt have strong conerstone investors NZ/SQ/EY and Dickie B

This offer is terminating the line of credit facility.

 

[Standby]

This offer is terminating the line of credit facility.

Thanks didnt see that.
However 350M today and 800M in Oct for the sale and lease back of 737s
indicates the cash flow they had on hand wasnt what they need

 

[cove]

Well this should make our frequent flyer points safe for a year or two. Losing $2 million a week last year has been a problem. Interesting that Richard Branson is having to buy back shares at 38 cents.
We do need a stronger number two airline and $350 million should do that.
I am a small shareholder so I will get 2 retail offers at 38 cents.
I was more concerned about the FF points.

 

[moa999]

So the $90m from shareholders in Aug wasn't enough
Can that and go cap in hand for $350m instead.

5 new shares for every 14 on issue

 

[dk4]

One airline group is generating shareholder value by buying back shares, the other airline group is diluting it by creating more shares.

Virgin's Entitlement Offer Presentation
https://www.google.com.au/url?sa=t&...nMaAdMHJdtFrg8rD1gl2d6A&bvm=bv.56343320,d.aGc

 

[pauly7]

Loads of articles in the wash up fr yesterday. The 3 big foreign airlines airlines have really got Virgin around their collective little fingers now with NZ at the forefront!

Looks like a distinct possibility VA will become private and they will eliminate all the minority shareholders in the process. Also love the fact that Etihad and SQ are arch enemies and being 'forced' together over this - how great must the meetings be

Analysts seemed divided about what this will actually allow VA to do as they are bleeding cash to fight QF.... Wondering why they don't settle on their share now and just focus on trying to become profitable...

Very interesting to watch play out!

 

[yohy?!]

Loads of articles in the wash up fr yesterday. The 3 big foreign airlines airlines have really got Virgin around their collective little fingers now with NZ at the forefront!

Looks like a distinct possibility VA will become private and they will eliminate all the minority shareholders in the process. Also love the fact that Etihad and SQ are arch enemies and being 'forced' together over this - how great must the meetings be

Analysts seemed divided about what this will actually allow VA to do as they are bleeding cash to fight QF.... Wondering why they don't settle on their share now and just focus on trying to become profitable...

Very interesting to watch play out!

Squeezing QF from both ends while they are in consolidation perhaps? (int and dom) AND before EK swoops in...

 

[maninblack]

Looks like a distinct possibility VA will become private and they will eliminate all the minority shareholders in the process. Also love the fact that Etihad and SQ are arch enemies and being 'forced' together over this - how great must the meetings be

Very interesting to watch play out!

And none of the 3 wants to let any of the others have a dominant position, the vultures are circling.

 

[anat0l]

Wait, I'm confused. Is this indicative of VA in trouble or consolidating financial position?

 

[eastwest101]

Looks like a distinct possibility VA will become private and they will eliminate all the minority shareholders in the process. Also love the fact that Etihad and SQ are arch enemies and being 'forced' together over this - how great must the meetings be

Analysts seemed divided about what this will actually allow VA to do as they are bleeding cash to fight QF.... Wondering why they don't settle on their share now and just focus on trying to become profitable...

Very interesting to watch play out!

Indeed - probably best to try to get VA to profitability otherwise they will be fighting for control of a big loss. But agree that maybe SQ EY and NZ have a more long term approach to business rather than retail shareholders. Its been interesting that Virgin America and Delta Airlines have been reporting some modest improvement in profits so maybe the industry (at least in the USA) could be turning the corner....

 

[Fruitcake]

And none of the 3 wants to let any of the others have a dominant position, the vultures are circling.

I, for one, would welcome cash-laden vulture overlords.

 

[anat0l]

I, for one, would welcome cash-laden vulture overlords.

I suppose it'll still be an Aussie true-and-blue airline even if that does happen