Air NZ looking to sell some/all of stake in VA

[jackthomas]

I also agree that I was hoping SQ would take a larger stake, however I think the most important thing that new buyer will bring is stability to VA amid NZ leaving, I'd say it has much less to do with current customers and an alliance.

VA is a primarily domestic carrier, where EY and SQ have no influence, I assume that this new buyer will make no difference to this.
However hopefully it will see some new expanded INTL routes.

 

[deva22]

Interesting to note (according to the AFR) that VA is issuing new shares to HNA, they are not buying the NZ stake - its still for sale.
Virgin raises $159m in placement to HNA Group | afr.com

That's very interesting. If it goes ahead, SQ still have the opportunity to be majority owner, whilst receiving a 'free' cash injection from HNA....

 

[Comoman]

That's very interesting. If it goes ahead, SQ still have the opportunity to be majority owner, whilst receiving a 'free' cash injection from HNA....

Agreed - it's also dilutive for the NZ and other shareholders....

 

[Conrad_S]

HNA are in acquisition mode by the look of it. I think they were also the recent purchaser of the Carlson hotel group and club Carlson. Is synergies the buzzword for this sort of thing?

 

[rtyuiop]

Wow, it being new stock is interesting - I guess that means they're confident there are buyers for the Air NZ units?

 

[kamchatsky]

Very interesting. They own a number of China based airlines as well.

I can see HX expanding more to Australia and have code-share with VA. HX already flies to OOL and CNS.

 

[moa999]

Interesting - wonder how happy SQ is about that...

Given they have board reps one assumes they knew

 

[HeavyElectricity]

VA press release: Virgin Australia Holdings Limited (ASX: VAH) Announces Strategic Alliance With HNA and New Equity Investment | Virgin Australia Newsroom

 

[BillytheFIsh]

Wow, it being new stock is interesting - I guess that means they're confident there are buyers for the Air NZ units?

Issuing new shares to HA provides VA with cash. NZ selling its shares provides no direct financial benefit to VA. Of course VA will care who NZ sells to, but whether they can sell it or not is not really VA's problem.

 

[rtyuiop]

Issuing new shares to HA provides VA with cash. NZ selling its shares provides no direct financial benefit to VA. Of course VA will care who NZ sells to, but whether they can sell it or not is not really VA's problem.

True! I guess if they're resigned to the NZ relationship not being salvageable that makes sense. Also gives us a clue as to how much NZ is asking for their shares, as presumably HA wouldn't have bought more expensive shares.

 

[rtyuiop]

Given they have board reps one assumes they knew

I'm sure they knew, but would be interesting to know if they could/would have blocked it.

 

[dajop]

I'm sure they knew, but would be interesting to know if they could/would have blocked it.

Maybe it was this capital raising /dilution by issuing shares to HNA, that triggered NZ's desire to sell and the alleged desire for JB'S exit.

 

[rtyuiop]

Maybe - although I lean towards that just being 'you need to make a decent profit sometime soon', personally.

 

[UP4014]

Or maybe NZ just wants some money themselves for something.

 

[Bolthead]

I'm happy... assuming VA start flying to China either direct or via code share.

 

[Deleted member 29185]

Interesting to note (according to the AFR) that VA is issuing new shares to HNA, they are not buying the NZ stake - its still for sale.
Virgin raises $159m in placement to HNA Group | afr.com

Ahh. So one could assume a degree of ill-feeling on behalf of NZ. It would have been interesting to be a fly on the wall when that suggestion was raised.....I'd love to hear the business plan as it would have to have been compelling for the partners to agree to a dilution of their shareholding. Now it's becoming interesting........

 

[pauly7]

I'm happy... assuming VA start flying to China either direct or via code share.

Yes will be good for VA customers who want to fly to China. Suspect though will come at the cost of other routes if they use their own metal.

 

[melb78]

if SQ buys the remaing shares from ANZ can they still launch a take over bid or not

 

[cove]

SQ would need Government approval. Looks like a difficult to get out of investment for Air New Zealand now that the market moved to 30 cents for the new entrant.

 

[melb78]

Read more: Singapore Airlines mulls Virgin Australia move, HNA spoils party | afr.com
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After reading this today it sounds like SQ my not be happy about HNA i hope SQ will buy the shares of ANZ and possable take over