Air NZ announces five for one share consolidation

1.00pm

Air New Zealand is to consolidate its shares, with every five of its ordinary shares converting to one ordinary share on August 23.

Air NZ chairman John Palmer said today the airline's capital restructuring in recent years had resulted in shareholders having large numbers of shares which was "administratively cumbersome and can be confusing".

The consolidation would reduce the number of ordinary Air NZ shares on issue from approximately 3 billion to 600 million.

"The decrease in the number of shares on issue following the share consolidation should result in a proportionate increase in Air New Zealand's share price, leaving the total value of each shareholding unchanged," Mr Palmer said in a statement.

For the purposes of the consolidation, shareholdings indivisable by five will be rounded up.

The consolidation will apply to the Crown's holding and also to shares resulting from the conversion of Redeemable Convertible Notes held by Qantas.

Ordinary shares issued on the exercise of outstanding options would be proportionately decreased and the exercise price would be adjusted accordingly.

Air NZ shares were unchanged at 40c in a softer market this morning.

- NZPA