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 throughcan 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, andcjoint sales, marketing and distribution activities.
