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.

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