Singapore Airlines and Virgin Australia complete placement of 245.6m shares, 10% ownership stake

Virgin Australia Holdings Ltd and Singapore Airlines Limited confirmed (19-Nov-2012) the placement of up to 245.58 million shares in Virgin Australia has been completed, representing a 10% stake (and 10% voting power) in the Australian carrier. The shares were purchased at a price of AUD 42.88 per share and the AUD105 million (USD109 million) purchase was secured on 19-Nov-2012 and is part of the airline's strategic investment to fund future growth. Virgin Australia is now almost 30% owned by international investors, with Air New Zealand holding 19.99% of the airline. As previously reported, Singapore Airlines on 30-Oct-2012 announced its intention to acquire the 10% strategic stake through the placement of new shares. The agreement includes anti-dilution rights for Singapore Airlines to maintain a 10% share in Virgin Australia in the event of an equity issuance from another transaction to be announced by Virgin Australia on 30-Oct-2012. Australian Foreign Investment Review Board (FIRB) approval was obtained for the purchase. In 2011 Singapore Airlines and Virgin Australia entered into a long-term partnership which included codesharing, reciprocal frequent flyer programme benefits, coordinated schedules and joint sales, marketing and distribution activities. The airlines are planning to expand their codeshare agreement further, with details to be announced in due course. Expanded codeshare ties are under discussion and details will be announced in due course. [more - original PR] [more - original PR - II]