HNA Group announces USD114.3m strategic investment in Virgin Australia, to take 13% equity stake

Virgin Australia Holdings announced (31-May-2016) a heads of agreement with HNA Group to form a strategic commercial alliance. In support of the alliance, HNA will make an equity investment in Virgin Australia in the form of an AUD159 million (USD114.3 million) placement of new shares at an issue price of AUD0.30 (USD0.21) per share, or a 7.1% premium to last close on 30-May-2016. Following the placement, HNA will have a shareholding of approximately 13% in Virgin Australia with plans to increase to 19.99% over time. HNA will also be invited to nominate a director to the board. Virgin Australia CEO John Borghetti said: "We are pleased to welcome HNA as a new shareholder and strategic alliance partner. The alliance will see us leverage the opportunities offered by China as well as the synergies of HNA's comprehensive aviation supply chain." The placement is subject to and will take place after approval by competition authorities in Australia and China. [more - original PR]