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Virgin Australia announces agreement to acquire 60% stake in Tiger Australia

30-Oct-2012 9:25 AM

Virgin Australia announced (30-Oct-2012) it entered an agreement with Tiger Airways Holdings to acquire a 60% stake in Tiger Australia for AUD35 million (USD36.2 million). In addition, Tiger Australia has agreed to make a payment of AUD5 million (USD5.2 million) to Tiger Airways, if Tiger Australia achieves certain financial performance targets. Tiger Airways and Virgin Australia have agreed to invest up to a further AUD62.5 million (USD64.6 million) into the business to fund growth in Tiger Australia. The JV has the flexibility to grow Tiger Australia's fleet from 11 to up to 35 aircraft by 2018. The agreement is subject to regulatory approval, including Australian Competition and Consumer Commission and Foreign Investment Review Board. As part of the agreement the carrier propose to enter into a shareholders agreement, brand licensing agreement and service agreement. [more - original PR]