24 December 2015
Shareholder Taking Off
2 Cheap Cars, which has built a nationwide chain of auto yards selling used imports since starting four years ago, is looking to sell its stake in Kiwi Regional Airlines, which is run by the founder of failed mid-1990s operator Kiwi Travel International Airlines. The car reseller today said it wants to sell its 10.4 percent holding in the airline, and that it "never intended to be a long-term investor." When it first invested last December, the company said it was "joining a consortium", with chief executive Eugene Williams appointed to the airline's board. Companies Office documents show the company initially owned 23 percent of the airline, but its shareholding was diluted in July, August and again earlier this month when Kiwi Regional Airlines issued more shares. "When we first got involved the airline didn’t have any other investors," Williams said. "We were pleased to help at the entrepreneurial level and play a part in getting it underway. Now with CAA certification, an aircraft and a growing passenger list it is a great time for others to come on board." There are currently four other investors: Nicole and Guy Domett, former directors and shareholders of the New Zealand School of Tourism, who each individually own 33 percent; Ewan Wilson, the company's founder and director, who owns 20.3 percent; and William Wilson, with 4.2 percent. Kiwi Regional Airlines was set up by Ewan Wilson in December 2014, after Air New Zealand announced it was abandoning services from Auckland to Kaitaia and Whakatane, Wellington to Whangarei, Taupo and Westport, and the Palmerston North to Nelson service in April 2015. 2 Cheap Cars was the first investor, and at the time, Williams told BusinessDesk his role would be "giving advice on marketing."
The full article can be found here : http://www.scoop.co.nz/stories/BU1512/S00849/2-cheap-cars-to-sell-10-stake-in-kiwi-regional-airlines.htm
Posted by Steve L at 3:47 PM