SIA Welcomes FIRB Approval To Increase Stake In Virgin Australia
Singapore Airlines today welcomed confirmation from Australia’s Foreign Investment Review Board (FIRB) that it will not object to SIA’s proposed increase of its stake in Virgin Australia to 19.9%.
FIRB approval will enable Singapore Airlines 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. The transaction is expected to be completed by the end of next week.
Singapore Airlines acquired an initial 10% of Virgin Australia in late 2012 through an injection of funds in Virgin Australia Holdings. The additional shares, representing a 9.9% stake, will be acquired from the Virgin Group.
Singapore Airlines 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.
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