Amazon foregoes Atlas Air board seat by keeping holdings low

Amazon is selling shares of Atlas Air Worldwide Holdings as it exercises vested warrants , a move that keeps its stake in the company under 5% but prevents Amazon from gaining the ability to a ppoint a director to Atlas’ board. The option for a board seat would be triggered if holdings surpassed 10% . Following share acquisitions this year, Amazon would be nearing the 10% threshold – were it not selling shares as they were acquired. [caption id="attachment_413967" align="alignright" width="560"] Atlas Air Worldwide operates seventeen 767-300Fs and eight 737-800BCFs for Amazon. (Photo/Amazon)[/caption] Greater influence in the company through formal board involvement is unlikely at this point as Amazon is keen to keep its holdings in Atlas below 5% , potentially for good reason . “ Amazon doesn’t actually want to go down the path of owning more than 4.99% because they’d have to face a whole other level of financial disclosure ,” Helane Becker, managing director of e quity r esearch f ir m Cowen , told Cargo Facts. In recent months , institutional investors including BlackRock and Greenlight have increased thei r holdings in Atlas , “ implying selling pressure from another source ,” Becker said . The institutional investments follow exercised Amazon warrants . On Oct. 9, Amazon acquired a round 1. 4 million shares, “ which represented approximately 4.99% of our outstanding common stock after the exercise ,” according to Atlas’ Q 3 earnings call. A second large purchase closed on Jan. 27 with Amazon acquiring an additional 1.3 million shares, according to a Q 4 2020 earnings call o n Feb. 18 . Had Amazon not been selling its shares, its holdings would be nearing 10%. Instead, holdings are thought to be around 4.9%. “U nder 5%, disclosure is minimal ,” said Becker. Despite forgoing the full board member, Amazon is still entitled to partial access, and can “ designate a non-voting observer ” to Atlas’ board, according to Atlas’ 10-K. Amazon declined to comment. Cargo Facts Asia, taking place April 20-21 as a virtual experience, is the event for exploring opportunity in the Asia-Pacific region. The event continues to bring together the best, brightest, and most innovative executives in the global air cargo industry. Learn more and register at www.cargofactsasia.com .

Amazon foregoes Atlas Air board seat by keeping holdings low

The e-commerce giant sells shares to keep its stake lower

Global carriers leverage scheduled flights for UNICEF vaccine deliveries

Vaccine shipments account for 120,000 tonnes of airfreight, Cargo Facts Consulting finds

Vaccine shipments account for 120,000 tonnes of airfreight, Cargo Facts Consulting finds

Cargo Facts Free Newsletters

Cargo Facts Connect Podcast

Follow Us

Welcome Back!

Retrieve your password