This is correct, shareholder approval is not required to issue up to 15% of new capital in a 12 month period.
And when you do this little bit of maths:
15%/115% = ?
you get 0.13 or 13%.
Best Wishes
Paper Tiger
Printable View
PT - you flown on any of these HNA planes of many guises?
Thank you PT.
I was coming back to it, had a late invite to a fishing trip to get sorted for an early start and one must prioritise these things not to mention the usual time taken for delicate negotiations with the other half to allow such a thing :scared:
Had a look at the link I posted and yes the 15% thing is in there, also of note with relevance to the intent signalled for HNA to go to 19.9%. I think they will want to go further than this down the line but the ASX requirements for a share issue like this have a restriction "An entity must not issue or agree to issue equity securities without the approval of holders of ordinary securities for 3 months after it is told in writing that a person is making or proposes to make a takeover for securities in it".
Reading this, (and correct me if I am wrong - knowledge of ASX is limited) 2 things come to mind, firstly HNA cant give notice of intent to wanting to undertake a takeover which as we know is >20% as it would void the ability to VAH to issue the shares. Secondly regarding Air's sale of their holdings, if they or perhaps an interested party had signalled to VAH that they were to purchase all of AIRs holdings (or >20% of) this in itself would constitute a takeover meaning VAH couldn't actually issue these shares....... I am not sure how this would play out if it was a party that already had a decent stake in VAH purchasing further but suspect if it met the takeover rules the same would apply.
ADDED: If AIR's legal team are reading this, perhaps a way to block the issue of the shares from VAH to HNA is to simply have a potential buyer issue a notice of intent of takeover by meeting takeover requirements and then VAH cant take the share issue to HNA any further than its current stage.... if I am reading it right but seems a bit too easy and I am not that smart :cool:
Anyway, hopefully I have better luck with the snapper than my ability to catch knives of late.
A bit odd that air NZ on asx is up close to 2%.
I believe that should anyone announce a takeover for VAH it now would have to be for a VAH that has been fattened by the new equity issued to HNA, I actually believe a takeover is unlikely.
I strongly suspect that once the new shares are issued and the new director is settled into his boardroom leather chair a pro-rata rights issue will be announced.
It will be a 1 for 1 at near market price and it may well be underwritten.
Best Wishes & Successful Fishing
Paper Tiger
I'm assuming that HNA can't use one of it's subsidiaries to take a piece of AIR's stake in VAH without falling foul of the same takeover rules? I'm thinking Grand China Air, or Hong Kong airlines or one of the other multitude that it appears to own or have substantial interests in.
To be fair PT - I did mark those posts with a heavy disclaimer and have already spent a TON of time on this company and betting a beer or two is always intended to be nothing more than a light hearted wager.
I still think this play's out okay for AIR.
Well I can honestly say the days fishing with plenty caught was better than AIR's performance today.
I am not sure what the charts are indicating but there does seem some stability even with a slow trend down its not to the degree that saw the 2.02 of last week. Call me crazy but considering re-entry again.
Patience. Observe, learn, decide and act only when the facts present themselves that satisfy's ones investing or trading strategy. Technically AIR turned away from obvious resistance Tuesday and again yesterday and followed through today, the probability is ... to be determined individually. Perhaps some might consider moving from the zero-sum game of betting on one way or the other, towards having a game plan for either eventuality, up or down. If it goes up I will ... or if it goes down I will ... ?
You make a good point and looking at the daily charts yesterday was not like the many AIR has had with gains in the morning and declines in the afternoon, yesterday the highest was at the start of the day and a gradual decline throughout it so perhaps it will slowly trickle down more. Each day gives an indication and it has had some weakness on Friday afternoons so perhaps today will be a test for it.
On the flip side is wait to long and risk missing the trading holt and subsequent rise on the news of a VAH sale which is the great unknown. I have bought and sold a number of times in the last few weeks trying to time it right and each time have either made some small gains or break even on them but theres a lot to make up for with holding on to too many on the way down at the start.
Do you think it is heading back to that near $2 resistance? I am wondering if over the next few trading days it may just test it again and the last week hasn't been a turnaround after all......
What does this relate to? Is this about AIR? Not quite enough context.
Worst flight I ever had was in the middle of a group of five seats.
In a seat that wouldn't recline. On a completely full flight. Kept being asked if I was ok when trying to sleep with my head on the tray table.
Hi all
Interested to hear what your thoughts are on what the final dividend for FY16 will be given the interim was 10c/share.
Are you also anticipating a special divvy (with/without the sale of AIR's VHA holding)?