SIA sells Virgin Atlantic stake to Delta Air Lines
Posted: 11 December 2012 2303 hrs
SINGAPORE: Singapore Airlines has confirmed it is selling its 49% stake in Richard Branson's Virgin Atlantic to Delta Air Lines for US$360 million (S$439 million) in cash.
The deal requires regulatory approval and is expected to close by the end of next year.
SIA acquired the stake in Virgin Atlantic more than 12 years ago.
In a filing with the Singapore Exchange on Tuesday, the carrier said it had been evaluating strategic options for its stake for some time, as the investment has not performed to expectations.
It added that commercial arrangements with Virgin Atlantic, including codesharing and frequent-flyer programme ties, are expected to remain in place after the divestment.
Separately, Delta Air Lines said it will form a joint venture with Virgin Atlantic.
Under the accord, Virgin and Delta will share costs and revenues on routes between New York and London.
Virgin Group and Richard Branson will retain a controlling stake in Virgin Atlantic.
The deal will enable Delta to expand at London's Heathrow airport, a lucrative hub for corporate passengers where landing slots are generally hard to acquire.
- CNA/ir
- wong chee tat :)
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