Connect and get the inside scoop on Airline Companies

Welcome to Airline Pilot Forums - Connect and get the inside scoop on Airline Companies

If this is your first visit, be sure to check out the FAQ. Join our community today and start interacting with existing members. Registration is fast, simple and absolutely free.


User Tag List

Post Reply
 
Thread Tools Search this Thread
Old 03-08-2021, 05:07 PM   #1  
Gets Weekends Off
Thread Starter
 
FlyAstarJets's Avatar
 
Joined APC: Jun 2006
Position: Frm. DHLAirways. Blue & White Boeing's Now. YEA!!
Posts: 551
Default Amazon Spends $131 Million for Stake in ATSG

Amazon now owns 19.5% of ATSG and can appoint 1 board member.

https://finance.yahoo.com/news/amazo...161447815.html
FlyAstarJets is offline  
Old 03-08-2021, 08:43 PM   #2  
Gets Weekends Off
 
wjcandee's Avatar
 
Joined APC: Aug 2016
Posts: 417
Default

Quote:
Originally Posted by FlyAstarJets View Post
Amazon now owns 19.5% of ATSG and can appoint 1 board member.

https://finance.yahoo.com/news/amazo...161447815.html
Amazon had the right to pay that $131 million for the shares and immediately-resell them, which would have yielded about a $270 million profit, as the shares had risen so that the market price of a share today was more than 3 times the price at which the warrants were exercisable. Instead, they say they're planning to hold onto the shares, which makes them ATSG's largest shareholder.
wjcandee is offline  
Old 03-09-2021, 07:31 AM   #3  
Gets Weekends Off
 
nitefr8dog's Avatar
 
Joined APC: Apr 2007
Posts: 1,519
Default

Quote:
Originally Posted by wjcandee View Post
Amazon had the right to pay that $131 million for the shares and immediately-resell them, which would have yielded about a $270 million profit, as the shares had risen so that the market price of a share today was more than 3 times the price at which the warrants were exercisable. Instead, they say they're planning to hold onto the shares, which makes them ATSG's largest shareholder.
Today........
nitefr8dog is offline  
Old 03-09-2021, 11:36 AM   #4  
On Reserve
 
flyboy730's Avatar
 
Joined APC: Dec 2018
Position: FO 75/767
Posts: 11
Default

Quote:
Originally Posted by nitefr8dog View Post
Today........
who else do you see becoming a larger shareholder?
flyboy730 is offline  
Old 03-09-2021, 01:57 PM   #5  
Gets Weekends Off
 
nitefr8dog's Avatar
 
Joined APC: Apr 2007
Posts: 1,519
Default

Quote:
Originally Posted by flyboy730 View Post
who else do you see becoming a larger shareholder?
Amazon is the largest shareholder TODAY....after Amazon exercised their Atlas options, they sold some and took the money. Amazon might do the same with ATSG.

Last edited by nitefr8dog; 03-09-2021 at 02:13 PM.
nitefr8dog is offline  
Old 03-09-2021, 05:08 PM   #6  
New Hire
 
Joined APC: Dec 2020
Posts: 1
Default

Y’all are missing one key point. If they where going to sell it off they would have done a cashless exercise similar to atlas. They wouldn’t have given ATSG 132 million.
Wheelsdock is offline  
Old 03-09-2021, 06:58 PM   #7  
Gets Weekends Off
 
threeighteen's Avatar
 
Joined APC: Dec 2010
Posts: 1,252
Default

Let the whipsaw games begin.
threeighteen is offline  
Old 03-09-2021, 08:41 PM   #8  
Gets Weekends Off
 
nitefr8dog's Avatar
 
Joined APC: Apr 2007
Posts: 1,519
Default

Quote:
Originally Posted by Wheelsdock View Post
Y’all are missing one key point. If they where going to sell it off they would have done a cashless exercise similar to atlas. They wouldn’t have given ATSG 132 million.
So they sell it in 6 mos....
nitefr8dog is offline  
Old 03-09-2021, 10:18 PM   #9  
Gets Weekends Off
 
woog315's Avatar
 
Joined APC: Apr 2015
Posts: 206
Default

Quote:
Originally Posted by nitefr8dog View Post
So they sell it in 6 mos....
I know we are just bloviating here, but if you read the filings it talks about AMZN having to meet certain requirements in order actually hold more than 4.9% of the shares ( the warrants are not shares, but ill assume we all understand that). I would pretty much guarantee that one of those requirements is that they cant flip the shares in a short time frame. They very intentionally kept below 5% with Atlas to avoid having to meet the requirements of the warrants. They did not do the same with ATSG. The warrants (with both ATSG and AAWW) were presumably structured in a way that basically makes amazon either exercise them and exit the position (technically whittle it down to 4.9%) or invest and stay invested for some time frame. They likely wont be selling those shares anytime soon.... but of course anything is possible.
woog315 is offline  
Old 03-09-2021, 11:37 PM   #10  
Gets Weekends Off
 
wjcandee's Avatar
 
Joined APC: Aug 2016
Posts: 417
Default

Quote:
Originally Posted by woog315 View Post
I know we are just bloviating here, but if you read the filings it talks about AMZN having to meet certain requirements in order actually hold more than 4.9% of the shares ( the warrants are not shares, but ill assume we all understand that). I would pretty much guarantee that one of those requirements is that they cant flip the shares in a short time frame. They very intentionally kept below 5% with Atlas to avoid having to meet the requirements of the warrants. They did not do the same with ATSG. The warrants (with both ATSG and AAWW) were presumably structured in a way that basically makes amazon either exercise them and exit the position (technically whittle it down to 4.9%) or invest and stay invested for some time frame. They likely wont be selling those shares anytime soon.... but of course anything is possible.
I think (FWIW) that those are good observations.

Amazon had the same kind of 4.9 percent feature with ATSG, subject to notice by Amazon to adjust that number. In the notice of exercise, Amazon bumped the percentage it can own to 19.999%, and ended up acquiring in total 19-something percent. It also agreed with ATSG that if ATSG does any share-repurchases (with limited exceptions), it will, at Amazon's option, acquire shares proportionally from Amazon to keep the Amazon percentage of ownership under that threshold (i.e. if they buy back shares such that Amazon's stake would suddenly be over the threshold, Amazon can force them to buy some of the shares from Amazon so Amazon stays under that level).

Amazon did do a cashless exercise for a portion of the shares it acquired. It fully-exercised the one warrant on a cashless basis, and split the other warrant between a cashless and cash exercise. What if anything that reveals about its intentions, I don't know. I thought I read somewhere that Amazon had announced that it intended to hold the shares for some time, but I don't see anything in the SEC filing that says that, and I can't seem to find the report I read that said that. (And reporters are often wrong.) SEC filing: https://otp.tools.investis.com/clien...81&Index=10000

Note that the timing of all of this was likely substantially-influenced by the fact that some or all of these warrants would have expired around now if they hadn't been exercised.
wjcandee is offline  
 
 
 

 
Post Reply
 



Thread Tools Search this Thread
Search this Thread:

Advanced Search


Related Topics
Thread Thread Starter Forum Replies Last Post
Gambling on XJT and their future JetJock16 Regional 278 03-10-2017 02:03 PM
ATSG Leases DC8DRIVER Cargo 3 01-13-2010 04:07 AM
AA 175 Million 3rd Quarter results AAflyer Major 1 10-18-2007 05:32 AM
Continental posts Q2 net income of $228 million COTriple7 Major 0 07-19-2007 11:20 PM
AA 231 million profit for the year AAflyer Major 24 01-23-2007 12:39 PM


All times are GMT -8. The time now is 11:40 PM.