Singapore Airlines to Increase Stake in Virgin Australia
24 June 2013
Singapore Airlines Welcomes FIRB Approval to Increase Stake in Virgin Australia
Singapore Airlines has welcomed confirmation from Australia’s Foreign Investment Review Board (FIRB) that it will not object to the airline’s proposed increase of its stake in Virgin Australia to 19.9 percent.
FIRB approval will enable Singapore Airlines (SIA) to complete the purchase of an additional 255.5 million shares in Virgin Australia at 48 Australian cents per share, for a total consideration of A$122.6 million (NZ$139.7 million). The transaction is expected to be completed by the end of next week.
SIA acquired an initial 10 percent of Virgin Australia in late 2012 through an injection of funds in Virgin Australia Holdings. The additional shares, representing a 9.9 percent stake, will be acquired from the Virgin Group.
SIA and Virgin Australia entered into a long-term partnership in 2011, encompassing codesharing, reciprocal frequent-flyer programme benefits and lounge access, co-ordinated schedules to provide seamless connections, and joint sales, marketing and distribution activities.