Originally Posted by
SetStandard
BluSdUp, sorry, I don’t think you understand, that’s not what has happened. NAS is planning on issuing new shares to its existing share holders so they get a cash injection of 3billion Kr (£268m). John Fredriksen, Bjorn Kjos and Bjon Kise have all agreed to underwrite the new share issue, meaning that if any existing shareholders don’t want to purchase their new shares, then they will. Most shareholders would purchase their newly issued shares because otherwise their holding in the company becomes diluted.
No one has given anyone any money - shareholders are being asked to buy newly created shares so that the company has enough working capital going forward. I wish NAS all the best, I really do, however I’m glad I didn’t buy shares in them.
You are spot on. For an investor this is a terrible deal and the future is so bleak how would anyone imagine buying more of such a loss making operation. I wonder if they will scrap long haul all together and hope to survive as a regional 737 operation. Their aircraft cost have to be sky high. Unloading the 787’s may be the last of the furniture to burn.