Singapore Airlines rules out acquisition of Virgin Australia
Posted 24 Jun 2016 11:28 Updated 24 Jun 2016 11:37
SINGAPORE: Flag carrier Singapore Airlines (SIA) has ruled out buying a majority stake in Virgin Australia, saying its interests in the market are “best served through an independent Virgin Australia”.
The statement on Friday (Jun 24) comes after speculation that SIA was interested in acquiring Virgin Australia, following news that Air New Zealand plans to sell its 25.9 per cent stake in the Australian airline.
“SIA wishes to put on record that it has not contemplated taking a majority stake in Virgin Australia. SIA’s interests in the Australian market - as well as in Virgin Australia itself - are best served through an independent Virgin Australia,” SIA spokesperson Nicholas Ionides said.
The Singapore carrier currently has a 20.09 per cent stake in Virgin Australia, and has committed to supporting the Australian airline’s recently announced entitlement offer. This could increase SIA’s shareholding to a maximum of 25.9 per cent, should other Virgin Australia shareholders not take up their entitlements.
“SIA and Virgin Australia have an extensive commercial partnership that has gone from strength to strength over the past five years, providing many consumer benefits. SIA is confident of the long-term prospects of Virgin Australia and is committed to supporting its long-term growth,” Mr Ionides said.
- CNA/cy
- wong chee tat :)
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