This relates to 5 non executive directors. Strangely Joyce is the only executive director on the board. And there is only one other board member apart from him who has any airline experience. But Todd Sampson is on the board and he knows how to wear a black t shirt. So all is good.
anyway from what I can understand what has happened is these 5 directors have taken up rights that will or can convert to actual shares in about 6 months time.
these right have been purchased at a share price of around 5.96
From the announcement
Granting of Rights under the Qantas Non-Executive Director Fee Sacrifice Share Plan (NED Plan), whereby a Non-Executive Director sacrifices a percentage of their base or total fees to acquire Shares.
So presumably if the share price is still below the rights price of 5.96 they are effectively worthless as they could have taken the cash instead and purchased the shares on market themselves for less.
I am not sure about that last paragraph. I know how rights issues work from a shareholder perspective. I have a feeling as it appears they have already paid the full amount of the shares at the price of $5.96 that they may have to take the shares at that price. The alternative is they get a refund of the full amount. Which thinking about it I don’t think will happen . So the part about the rights being worthless is wrong as they have actually paid for the shares.
Last edited by Foxxster; 20th Mar 2020 at 07:14.