My understanding of Australian company rules is that they...

My understanding of Australian company rules is that they prohibit any entity from buying more than 20% of the company unless it is :-

• an acquisition that results from an acceptance of an offer under a takeover bid (item 1 of s611)
• an acquisition approved by a resolution of the company in which the acquisition is made (item 7 of s611)
• acquisitions of no more than 3% in every 6 months (the 3% "creep" exception in item 9 of s611)
• an acquisition that results from a rights issue (item 10 of s611)
• a downstream acquisition resulting from an acquisition of relevant interests in another listed entity (item 14 of s611) and
• acquisitions resulting from a scheme of arrangement (item 17 of s611).

My understanding is that SIA and HNA would be unable to buy the 23% AIZ stake in VAH immediately unless they make a takeover bid for complete ownership of VAH, or unless a majority of VAH shareholders pass a resolution to allow the purchase of the AIZ stake, or unless a majority of VAH shareholders approve a scheme of arrangement. AIZ could sell up to 20% of its stake to a new player if they can find one to pay whatever price AIZ want and then sell the remaining 3% to SIA, or Etihad using the 3% creep rule, or to HNA, or Branson, or whoever.

If there is a capital raising of one billion dollars that AIZ chooses not to participate in then their 23% share would become roughly an 11.5% share and AIZ could sell it all to a new player without triggering the 20% limit.

AIZ could sell 3% stakes to each of Etihad, SIA, HNA and Branson every 6 months and within 12 months AIZ could offload all of its stake.

There are lots of scenarios that could play out. The FIRB and ASIC might need to give approval for some of the sale options.