Originally Posted by
BluSdUp
It was a glorious day in Norway today as Bjørn Kjos announced that Sterna Finance controlled by John Fredriksen has added 3 billion nkr to Norwegian in a stock expansion.
I think this needs some clarification. The business media reports they are today SEEKING 3bn Kr in a Rights Issue. That is where those who currently hold stock are entitled to invest more at a discount, but can of course choose not to if they wish.
https://www.bbc.co.uk/news/business-47039303
3bn Kr is about USD 250m, in other words around the price of one Boeing 787-9.
The 3bn Kr just about covers last year's loss, so not apparent how it will assist future operations. As always when someone looks for money to cover a loss, you have to ask if the operation is loss making not only how they are going to convert it to profitability, but also how they are going to pay the additional money back, in the case of a Rights Issue of shares either in dividends (good luck) or in increased value of the shares, which they could then sell.
I think their aircraft lessors will understand the difference.
From the BBC
"Billionaire John Fredriksen"
Old adage I know, but which a number here will have heard.
Q : How do you become a Millionaire through airline ownership.
A : Start as a Billionaire.