RE:RE:RE:RE:RE:RE:Chorus Aviation Announce 4th Quarter and 2020 YE ResultsTakafuji wrote:
Yeah I did find that interesting but I'm wary on what they mean by investment. Equity offering for cash infusion? But government bailout is on the way, no need to dilute needlessly. No need to take on higher interest debt. Chorus doesn't get anything if the interested party buys equity on the secondary market so it wouldn't be that. Only types of investment I think that would be beneficial to shareholders that would make sense is yet another subsidiary, but created as joint venture maybe 51 percent equity chorus, 49 the unnamed investor. Investor can bring what they are good at to the table, chorus will bring what they are good at win win, hopefully it taps a market chorus isn't in yet to gives them a permanent competitive advantage in one they are already in.
The investor is likely interested in the leasing business. They could create a subsidiary for that division and sell a portion to the investor. Reduces risk for that part of the business, raises the value of Chorus shareholders (as long as the partial sale price reflects a decent valuation for the assets).