SIA raises Virgin Australia stake
Singapore Airlines (SIA) has agreed to acquire another 9.9% of Virgin Australia, taking its total stake in the carrier to 19.9%.
The deal will see SIA purchase 255.5 million shares currently held by the Virgin Group at AU$0.48 per share. The total value of the deal is AU$122.6m (US$125.7m).
“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,” said SIA’s CEO Goh Choon Phong.
SIA acquired 10% of Virgin Australia in late 2012, and the two airlines currently operate a wide-ranging partnership that encompasses codesharing, schedule alignment and joint sales, marketing and distribution activities.
The move follows Virgin Australia receiving final approval to buy 60% of Tiger Airways Australia from its Singapore-based parent company. SIA holds a 32.84% stake in Tiger Airways Holdings.