31-Aug-2010 12:05 PM

Qantas foreign ownership hits low at 36%

Qantas foreign ownership hits low at 36%: The longstanding issue of Qantas seeking to be removed from the restriction of a maximum of 49% foreign shareholding becomes a non-issue today as the world changes. Today's report on foreign investment in the flag carrier shows the level at a long-time low of 36.3% as of the end of last month. This largely reflects the impact that one large US investor, Capital Group, has on the register. Its holding tends to fluctuate from between 17% down to around 8%, depending on the respective levels of the USD and the AUD and interest rates; one part of the group invests based on dividends (which Qantas did not pay last year). It looks very much as if the longtime Qantas quest to have the cap removed is as good as dead. Any international JV can be achieved without the need for change and, apparently, the earlier issue of needing to gain better access to foreign capital sources has ceased to be a hindrance to the carrier.

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