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Wednesday, 1 May 2013 00:00 - - {{hitsCtrl.values.hits}}
Singapore Airlines has agreed to acquire another 9.9% of Virgin Australia in a move that will increase its stake to 19.9%.
The strategic stake will be acquired through the purchase of shares held by the
Virgin Group. Singapore Airlines will purchase 255.5 million shares at 48
Australian cents per share for a total consideration of AU$ 122.6 million.
The purchase is subject to approval from Australia’s Foreign Investment Review
Board (FIRB).
“Our partnership with Virgin Australia has been going from strength to strength,
offering a wide range of consumer benefits,” said Singapore Airlines CEO Goh
Choon Phong.
“Increasing our stake in Virgin Australia is another example of Singapore Airlines’
deep commitment to the important Australian market. It also demonstrates our
support for the ongoing transformation of Virgin Australia, which has created a
more competitive aviation market in Australia.”
Singapore Airlines acquired 10% of Virgin Australia in late 2012 through an
injection of funds in Virgin Australia Holdings.
The two airlines entered into a long-term partnership in 2011, encompassing
codesharing, reciprocal frequent-flyer program benefits and lounge access, coordinated schedules to provide seamless connections, and joint sales, marketing and distribution activities.
