NZ sells 20% more of airline Aviation
In the third of four planned asset sales, about 221 million shares in the flag carrier were sold to mostly New Zealand investors for $NZ1.65 apiece - the price at which the stock closed before the sales process.
The sell-down reduces the government's stake in Air New Zealand from 73 per cent to 53 per cent, and follows partial sales of stakes in utility assets Meridian Energy and Mighty River Power.
Of the Air New Zealand shares sold by the government, 43 per cent were picked up by New Zealand institutional investors, 41 per cent by local retail investors, and the rest by overseas institutions.
New Zealand Finance Minister Bill English emphasised that about 88 per cent of the airline would remain in the hands of local investors, including the government.
Air New Zealand, which is Virgin Australia's largest shareholder, will resume trading on Wednesday after spending the last two days in a trading halt while the bookbuild was carried out.
Moody's also reiterated its Baa3 rating and stable outlook for Air New Zealand following the sell-down.
The dual-listed airline has been the best performer among its regional competitors, out-performing Qantas and Virgin, which have been in the midst of a major battle in this country's domestic market.
Air New Zealand shares hit a five-year high last week despite high fuel prices and stiff competition on routes.
In contrast, shares in Qantas slid more than 4 per cent to $1.125 on Tuesday - their lowest level since September last year - as it continued to ramp up pressure on the federal government to intervene in Virgin's recent capital raising, which is set to result in Air New Zealand, Etihad and Singapore raising their stakes.
Qantas has launched an online petition called "fairgo4qantas" to rally its 30,000-strong staff and the public against what it describes as an "unfair playing field" due to the growing influence of Virgin over government-backed airlines.
Frequently Asked Questions about this Article…
The New Zealand government sold a 20% stake in Air New Zealand as part of its asset-sales program, which has raised almost $NZ4 billion. This sale is the third of four planned asset sales aimed at reducing the government's stake in various companies.
The New Zealand government earned $NZ365 million (approximately $324 million) from selling a 20% stake in Air New Zealand.
The Air New Zealand shares sold by the government were purchased by a mix of investors: 43% by New Zealand institutional investors, 41% by local retail investors, and the remaining shares by overseas institutions.
After the sale, the New Zealand government's stake in Air New Zealand has been reduced from 73% to 53%.
Air New Zealand shares hit a five-year high last week, despite high fuel prices and stiff competition on routes, indicating strong market performance.
Moody's has reiterated its Baa3 rating with a stable outlook for Air New Zealand following the government's sell-down.
Air New Zealand has been the best performer among its regional competitors, outperforming both Qantas and Virgin Australia, which are engaged in a major battle in the domestic market.
In response to competitive pressures from Virgin Australia, Qantas has launched an online petition called 'fairgo4qantas' to rally its staff and the public against what it describes as an 'unfair playing field' due to Virgin's growing influence over government-backed airlines.
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