Ann: Air NZ updates on capital raise timing and liquidity, page-70

For a start the company has valued the shares at $0.53. If I offer you something for $x and you accept my offer of $x what is the market value of my something.

Net tangible assets are running at around NX $0.50. And I think that is generous with not much flying happening globally.

Its a loss maker. No sign of profit and certainly no sign of dividend for years.

Its essentially illiquid. The only reason it hasn't got into receivership is the govt keeps propping it up with loans. It can't stand on its own two feet.

There are a lot of people sitting on flight credits and Air Miles. So real revenue is restrained.

The capital raise is essentially to tidy up the balance sheet by paying down debt. It isn't being used for new routes aircraft services or any revenue growing exercise. So wait for the impact of the share dilution.

Looking forward it still has to find $5b for new planes. So another capital raise or two and even mo share dilution.

Air is essentially a government department and they are worth nothing.
Take the average value of the three shares and you get closer to $.050.

Its a dog that is burning cash and will continue to do so.