Wirraway
23rd Aug 2002, 20:30
Sat "Melbourne Age" 24/8/02
Cash-rich Qantas may buy ticket in Singapore
By Geoffrey Thomas
August 24 2002
With Qantas' war chest boosted by a successful $600 million capital raising on Thursday night after its $428 million net profit announcement on Wednesday, some industry specialists suggest an equity marriage with arch rival Singapore Airlines may soon be on both airline's radars.
As expected, Qantas shares were sharply lower yesterday after the capital raising, closing 22 cents down at $4.47.
The second phase of the $800 million capital raising starts with the retail offer opening on September 9. Qantas has allocated shares in both the institutional and retail book build on the basis of a pro rata entitlement of one share for every 8.2 shares, at an issue price of $4.20.
Of most interest is what Qantas will do with the raising, says Peter Negline from Hong Kong-based J.P. Morgan.
"While we believe that Qantas needs these additional funds to support their balance sheet during the heavy capex in the 2002-03 year, we believe that this capital could be surplus to the company's needs in 2004-05 and beyond, assuming a reasonable level of earnings and cashflow generation in the interim," Mr Negline said.
Qantas has revised upwards its capex requirements to $3.8 billion for the 2002-03 year but a large portion has not yet been accounted for, Mr Negline said. Qantas chief executive Geoff Dixon had previously hinted at equity expansion away from traditional areas such as Air New Zealand, and some airline specialists suggest that an equity stake in Singapore Airlines could be on Qantas' radar.
- West Australian
Cash-rich Qantas may buy ticket in Singapore
By Geoffrey Thomas
August 24 2002
With Qantas' war chest boosted by a successful $600 million capital raising on Thursday night after its $428 million net profit announcement on Wednesday, some industry specialists suggest an equity marriage with arch rival Singapore Airlines may soon be on both airline's radars.
As expected, Qantas shares were sharply lower yesterday after the capital raising, closing 22 cents down at $4.47.
The second phase of the $800 million capital raising starts with the retail offer opening on September 9. Qantas has allocated shares in both the institutional and retail book build on the basis of a pro rata entitlement of one share for every 8.2 shares, at an issue price of $4.20.
Of most interest is what Qantas will do with the raising, says Peter Negline from Hong Kong-based J.P. Morgan.
"While we believe that Qantas needs these additional funds to support their balance sheet during the heavy capex in the 2002-03 year, we believe that this capital could be surplus to the company's needs in 2004-05 and beyond, assuming a reasonable level of earnings and cashflow generation in the interim," Mr Negline said.
Qantas has revised upwards its capex requirements to $3.8 billion for the 2002-03 year but a large portion has not yet been accounted for, Mr Negline said. Qantas chief executive Geoff Dixon had previously hinted at equity expansion away from traditional areas such as Air New Zealand, and some airline specialists suggest that an equity stake in Singapore Airlines could be on Qantas' radar.
- West Australian