International Consolidat... Share Discussion Threads

[hamhamham1] 11/9/2020 09:11

84p seems about the right new target price here if you are diluting the existing shares in issue count by 145%...


"IAG plans to issue 2.9bn new shares in a rights issue that will raise €2,471m. This will increase the firm’s total share count by around 145%, from 2bn to almost 5bn. The new shares will be priced at €0.92 (around 84p)."

[welsh3] 11/9/2020 08:28

When will we receive this information and is there a deadline to take the right issue up

[montyhedge] 11/9/2020 08:14

Rescue rights issue, never good.

[davethehorse] 11/9/2020 08:08

Steady slip back to 150p levels from here imo

[loganair] 10/9/2020 20:33

Lufthansa plans to eliminate its biggest passenger jets as it deepens fleet cuts, leading to a parallel surge in job reductions, people with knowledge of the proposals said.

Lufthansa is looking at retiring remaining Airbus SE A380 double-deckers, the bulk of smaller A340s, and all of its Boeing Co. 747-400 jumbos.

The fleet cuts would surpass the 100-aircraft reduction so far disclosed by Lufthansa, net of new deliveries, with job losses exceeding the 22,000 that the carrier had said such a contraction would entail.

Europe’s biggest airline is falling back on its most economically sustainable routes as the coronavirus crisis roils global travel markets.

The new moves would leave Lufthansa with a four-engine fleet limited mainly to Boeing 747-8I jumbos, of which it has 19, the youngest of which are just five years old.

[m1k3y1] 10/9/2020 18:48

Logan....but why would Qatar, who have invested at circa 350 and 600, want the share price down to c90p ?

[loganair] 10/9/2020 18:18

Easyjets rights issue came out months ago when their share price was much higher and then at a discount of less then 5%.

IAG waiting so long and at a discount of 58% smells distinctly of Qatar Airways being in the driving seat when it comes to IAG.

[m1k3y1] 10/9/2020 18:05

Logan......
I agree when you say "IAG are waiting for Air Europa to get their Spanish government bail out of €400mln before buying them."

It seems obvious but I don't quite understand the c90p forecast, although in the short term, airlines will continue to struggle.

[loganair] 10/9/2020 17:54

At the current ex-rights share price of 131p puts IAG on 2021 forward expected earnings of 35 times and why I believe after ex-rights IAG share price is likely to fall to ex-rights c90p which would still put them on 25 times 2021 forward expected earnings.

IAG are waiting for Air Europa to get their Spanish government bail out of €400mln before buying them.

[loganair] 10/9/2020 17:48

The new shares are being offered at a 58% discount to the current share price which I firmly believe is what Qatar Airways wanted.

[m1k3y1] 10/9/2020 17:47

So it looks like BA are trying to get out of the Fire - Hire scenario by reaching a last minute Agreement with the Union representing Worldwide and Eurofleet crews.

This seems odd, given that they have already issued Fire and re-hire contracts.....
Unless of course, they would like a Government bailout, which may not be forthcoming if BA have previously fired and re-hired their employees on much inferior terms.

[loganair] 10/9/2020 17:32

For every 2 shares currently held one is being offered 3 new shares + the 2 shares currently held which will give a total of 5 shares.

Each new share being offered at c84p.

For every 2 shares held one will need to stump up c252p for 3 new shares.

652p / 5 = 131p.

The average price per share of these 5 shares is c131p.

[lyndon b] 10/9/2020 17:09

Hi Loganair, yeah I calculated 131p when ex rights and to take up the rights you need to stump up 63% of your existing holding.

My calculation in the earlier post above must be bull if it comes out at 189p (i.e. it can't be a 1 for 2 (with the 1 being 168p)??

Lufty/anyone....why do they not match up??????????????

You are right...almost 5bn shares once ex rights....not a lot of profit to go round each share for the foreseeable!

[nemesis6] 10/9/2020 16:36

Thanks ioganair...me too hornet...wish id never heard of SIPP and managing my own pension...destroying more like

[watfordhornet] 10/9/2020 16:29

Sold out. Not sure whether I will regret it but seem to be lots of large blue chips significantly down which feel potentially lower riskSure you guys will make a packet on here but after the hammering I have taken this year will plonk in a GSK/VOD/HSBC type share which feel "a bit less volatile"Good luck

[loganair] 10/9/2020 16:25

Because the share price hasn't gone ex-rights, in the same way a share price only falls after it has gone ex-dividend and not when the amount of the dividend is first announced.

[m1k3y1] 10/9/2020 16:01

soho ......not if it is a 60% cut in your income.

[loganair] 10/9/2020 15:56

Looking into IAG has sent shudders down my spine.

Ex-rights, for every 10p rise in IAG share price increases the value of IAG by c£500mln.

Ex-rights at 200p would value IAG at c£10bln, therefore I can not see IAGs share price rising sharply any time soon as I do not see IAG being worth £10bln for a very long time to come.

I do not believe I would be far off by saying after ex-rights IAG will have by far the most number of shares in issue of any company in the FTSE 350, maybe the most shares of any company in the entire FTSE.

[soho2] 10/9/2020 15:54

True and not ideal but if basic salary and pension are not touched, it would be better than a 0 h contract

[montyhedge] 10/9/2020 15:50

Rescue rights issue, never appealing, last chance saloon in my view.

[loganair] 10/9/2020 15:36

In the current environment I believe the fair value of IAG shares after they have gone ex-rights is c90p = 25 times expected 2021 earnings.

[loganair] 10/9/2020 15:27

City brokers expect IAG to report a small profit in 2021, after factoring in the rights issue, the stock is still trading on about 35 times forecast earnings.

[m1k3y1] 10/9/2020 15:26

BBC
British Airways owner IAG to cut more flights