Air New Zealand shares are in a trading haft after the New Zealand government announced it is selling down its stake in the kiwi carrier from 73 per cent to about 53 per cent.
Shares in Air New Zealand were trading at NZ$1.65 before the trading halt, valuing the 20 per cent stake at about NZ$363 million. The shares are being sold through a book build process aimed at maximising the number of shares sold to New Zealand based investors, with an initial starting price for bids under the process set at NZ$1.60.
The book build process is expected to be completed on Wednesday, allowing share trading to resume.
The New Zealand government in effect re-nationalised Air New Zealand following the Ansett collapse in September 2001, which saw it inject NZ$885 million into the airline.