Air New Zealand Recapitalisation Completed
The Crown has today completed the acquisition of an 82 per cent stake in Air New Zealand.
Announcing the transaction, Finance Minister Michael Cullen said it followed approval of the $885 million recapitalisation programme by Air New Zealand shareholders at a meeting on 19 December last year.
The deal consists of two parts. Tranche B, for $585 million, has been taken up as 2.167 billion ordinary shares at an issue price of 27 cents a share.
Tranche A was initially paid to Air New Zealand as a $300 million loan. That loan has been satisfied by the issue to the Crown of 1.25 billion convertible preference shares at 24 cents each.
A further 29.866 million convertible preference shares have been issued in satisfaction of interest on that loan.
The convertible preference shares will not be listed on the stock market.