If QF issues shares at $4.752 to fund this purchase they will have to issue 130 million shares or about 7% of total shares outstanding to cover the $614 million purchase price of AQZ. They could try to issue shares at over $4.752 but the question is if anyone would take up the offer in light of a pending court case and guaranteed $400 milion loss for 2HFY22 period. They will have to substantially discount the issue price compared to the SP at the time to make up for the poor fundamentals of QF.
They will likely use this acquisition as a Trojan horse in raising well over the required amount (because God knows they need it) and pitch it to shareholders as being 'oversubscribed'.
I think a company issuing 7% new shares in a year is alot.
Ann: Qantas to Acquire Alliance Aviation, page-4
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