Apparently the Norwegian carrier in distress can look far for the loyal shareholders who have been asked to hold their shares over Easter .
On Tuesday morning there is a large sale of Norwegian shares on the Oslo Stock Exchange, where after a short hour’s trading the share falls to more than 50 percent.
The big fall comes in response to a rescue plan that was presented before Easter. Here, management suggested that the company’s huge debt of almost NOK 60 billion should be converted into shares in the company.
This would mean that banks and leasing companies that have cash in their holdings in Norwegian can instead convert their debt into a holding in the company.
However, such a dilution of the shares will result in losses to the current shareholders of about 96 percent of their shareholding, the stock exchange company Nordnet has calculated.
– One Norwegian krone today will be worth about four cents after such an agreement. It is not very nice to be a small shareholder in Norwegian today, says investment economist Mads Johannesen in Nordnet for today’s edition of the Norwegian business newspaper Dagens Næringsliv .
According to Nordnet, Norwegian has around – already hard-tried – 10,000 small shareholders, which can lose almost their entire investment if they support the rescue plan.
In total, the rescue plan includes an injection of 77 billion Norwegian kroner, equivalent to 51 billion Danish kroner.
Since the turn of the year, Norwegian has lost more than 80 percent of its value. You can see the developments below.
This is not included here today, where the Norwegian share is traded at around five Norwegian kroner.