22-Feb-2011 8:06 AM

Air New Zealand confirms Virgin Blue ownership plans

Air New Zealand confirmed (21-Feb-2011) it has been advised by Virgin Blue that the Australian airline's current foreign ownership level is 49.78%, more than the 49% allowed under Australian law. Air New Zealand, which has a 14.99% stake in the airline, plans to hold 0.8% of its interest in Virgin Blue through equity swaps, which provide no ownership rights but provide price protection for purchase at a later date. When the level of holding by other foreign shareholders reduces sufficiently, Air New Zealand will will convert the remaining swaps into a direct shareholding. [more]