Jetconnect Limited and And Controlled Entities Financial Statement 2003
Note 10: Investment in Controlled Entity
During the year, Qantas Investments (NZ) Limited was incorporated and issued 100% of its share capital to Jeconnect Limited for $2. The principle activities of Qantas Investments (NZ) Limited is to hold a loan note which is convertible to a 4.99% stake in Air New Zealand Limited
Note 11: External Investment
On 31 December 2002, the Jetconnect Group acquired a loan note which is convertible to a 4.99 percent stake in Air New Zealand Limited for $98.2 million. The Share price at June 30 2003 was $0.54, which is above the purchase price paid.
Jetconnect held the investment stake in Air New Zealand taken in 2003. That stake was sold in 2007, leaving it with assets of approx NZ$176 million (
2007 financial Statement).
It's latest financial statement (
2016) shows assets of only NZ$21 million.
One line of thought is that the continued reason Jetconnect continued to exist was to burn out the capital gain on the 4.99% ANZ stake, thus avoiding repatriating the profit attracting a tax liability. Now that the assets have diminished sufficiently, the reason for its continuation has ceased. Job done. But that is just speculation.
Jetconnect Documents including financial statements