Can anyone explain why AIZ gave up a position on the board of VAH when they owned 25% of the company?
Can anyone explain why AIZ didn't have 2 positions on the board when 2/9 is less than 25%?
It seems like AIZ were sucker punched by VAH. If AIZ had stayed on the board they would have known about the VAH offer to HNA before it was agreed to. AIZ might have quickly agreed to sell a 19.9% share to HNA at the 30 cent price that HNA paid.
AIZ would have benefited from quick cash and a reduction in their exposure to VAH by 80%.
HNA would have benefited by quickly owning 19.9% of undiluted equity in VAH.
VAH would have still had a new partnership with HNA.
WIN, WIN, WIN instead of LOSE, WIN, WIN.
Now what options does AIZ have for a sale of their stake in VAH? AIZ might have to hang on in the hope that VAH can become profitable and then sell a much diluted AIZ stake in VAH at a much later date.
What were the reasons for AIZ buying into VAH anyway? In hindsight it seems like a very bad decision.
AIZ Price at posting:
$2.06 Sentiment: Hold Disclosure: Not Held
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