Thanks for the link to the SMH news article.
I found a few comments to be most interesting.
"HNA will also take a placement of new shares in Virgin, giving the Chinese group 13 per cent initially, and has signalled it wants to take the holding to 19.9 per cent at 30 cents a share. This in effect puts a cap on the price that Air New Zealand can hope to get for its stake in Virgin - an outcome that will undoubtedly infuriate Luxon.'"
"It also leaves Air New Zealand with one less potential buyer of its stake, as HNA had been speculated as a potential candidate. Whether another Chinese airline would still be interested remains to be seen. It's possible but probably less likely."
"The cash injection from HNA, however, won't go far enough to solve Virgin's overgeared balance sheet"
"Virgin said on Tuesday that HNA will support changes to Virgin's capital structure - a move that is due to be announced over the coming weeks."
HNA allegedly want to increase their share holding to get it up to 19.9%. Will VAH create more new shares for HNA and sell them at 30 cents, or will HNA try to buy existing shares from AIZ, or from elsewhere?
Why didn't HNA just buy the 19.9% stake in VAH that they allegedly desire directly from AIZ? I suspect that AIZ wasn't ready to accept the 30 cent offer and AIZ didn't expect VAH to sell new shares at 30 cents.
AIZ Price at posting:
$2.06 Sentiment: Hold Disclosure: Not Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)