South Pac Share and Oil Price Weekly Update

Each week the Blue Swan Daily brings you a snap shot of the key share and oil prices related to all things travel and aviation.

Monthly Share Price Snapshot:

Source: ASK (Prices in AUD)

Key news stories of the week

Qantas Airways

Qantas began its share buy back, announced at the recent half year results meeting. The carrier plans on completing a AUD378 million (USD297 million) share repurchase allocation. Last week’s buy back included:

  • 09-Apr-2018: 906,432 shares for a total consideration of AUD5.4 million (USD4.2 million).
  • 10-Apr-2018: 874,649 shares for a total consideration of AUD5.2 million (USD4.0 million);
  • 11-Apr-2018: 825,863 shares for a total consideration of AUD5.0 million (USD3.8 million);
  • 12-Apr-2018: 1,088,944 shares for a total consideration of AUD6.6 million (USD5.1 million).
  • 13-Apr-2018: 2,260,591 shares for a total consideration of AUD13.6 million (USD10.5 million).

Virgin Australia

Virgin Australia shareholder pushes carrier to relook at privatisation and improve transparency

Virgin Australia shareholder and founder of Wilson Asset Management Geoff Wilson called on the carrier’s board to be “more transparent and to seriously look at privatisation again” (The Australian Financial Review, 12-Apr-2018). According to Mr Wilson, the carrier’s shares are undervalued and he is concerned that the share price may never fully reflect “the true [value] of the company”.

Virgin Australia to repurchase 12.9m shares under buyback of ‘unmarketable’ parcels

Virgin Australia reported (16-Apr-2018) the outcome of the buy-back of ‘unmarketable’ parcels of shares. Under the terms of the facility, Virgin Australia offered to buy back parcels of shareholdings valued at less than AUD500 (USD388.59) at a price of AUD0.30 (USD0.23) per share. Details include:

  • Eligible shareholders that left the register during the buy-back facility period: 55 shareholders, holding 33,535 shares, representing 0.24% of the eligible shares;
  • Eligible shareholders that elected to retain their ‘Unmarketable Parcels’: 1200 shareholders, holding 956,194 shares, representing 6.88% of the eligible shares;
  • Eligible shareholders whose ‘Unmarketable Parcels’ will be bought back and cancelled: 19,834 shareholders, holding 12,900,841 shares, representing 92.88% of the eligible shares;

If eligible shareholders did not opt out of the facility by 13-Apr-2018, Virgin Australia will purchase and cancel the shares on 23-Apr-2018. The number of ordinary shares on issue will fall from 8,458,119,315 before cancellation of shares to 8,445,218,474 after cancellation.

Oil Prices Update