Reducing 4D complexity to 2D simplicity
For those of you confused about the recent Virgin/Air New Zealand/Nanshan proceedings I thought I would provide this clarifying graphic:
http://assets.amuniversal.com/0cef85...c6005056a9545d
Best Wishes
Paper Tiger
All numbers are Millions of Dollars
Quote:
Originally Posted by
Roger
I'd like to see your maths on that. I made a call on this a page or two back and welcome your detailed rebuttal of same. $50m write down in prior year and approx. another $50m to come, hardly the hundreds of millions you're claiming.
At 30-Jun-2015 Air New Zealand carried there stake in VAH at NZ$360 having 'lost' NZ$124 on their cumulative investments of NZ$484 (I may have been a bit sloppy, and ignored a few million in transaction costs here :blush:).
If we assume that the entire holding sells for AU$301.3 (ie at 33cps) which is today about NZ$317 then that is a further NZ$43 loss (and ignores any transaction costs etc).
Thus there would be total losses of NZ$167. The actual final bill will obviously be a little different.
Valuing the 'unsold 2.5%' bit at current market price gives a current total loss of NZ$175.
All original numbers sourced from Air New Zealand Financial Statements, Air New Zealand Statements and the ASX.
Quote:
Originally Posted by
Roger
What's clear is that if they hadn't of sold they'd be on the hook for hundreds of millions more share capital to be injected into a loss making company.
The much lesser of two evils has prevailed here.
Taking part in the capital raising is not compulsory.
Best Wishes
Paper Tiger