Forum Archive Index - December 2002

["G Stolwyk" <stolwyk@wave.co.nz>]

Here are some remarks on the outcome:

 

As mentioned, I don't believe there will be an overhang apart from some shares drifting back from the Institutions.

That will be of no real concern lately. In my opinion, the share price has room to move; I do hope that one number, I mentioned earlier, $5.40, will be reached before too long.

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Anyway, $191 mill. is peanuts compared what the ACC needs, apparently. As mentioned, the remaining stake could be "locked in" for years to come as no prospective ACC councillor would ever dare to discuss it.

So, after all, a very good outcome of the Sale process: 39 mill. shares locked up and not available to the market. 

Prior to Reconstruction, we had 422 mill. shares. Now we have 303.5 mill. shares only and (38.9 mill.+ 10 mill.) are locked in, leaving 254.6 mill shares in the market.

The Annual Report mentions that the 19 largest shareholders (exclude ACC) held 204 mill shares. That would be 147 mill after the reconstruction.

Now add the 39 mill held by ACC + the 39 mill sold to Institutions and that brings up a total of 225 mill or 74% of the total shares held by the 20 largest holders, assuming that there were no other changes.

The public will also hold a significant parcel in the bottom drawer so the number of "free" shares may not be that large.

Gerry

Holds AIA. Readers will buy, hold or sell AIA at their own risk.

 

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