Air New Zealand cuddles up with Virgin Blue
Air New Zealand plans to buy up to 14.99% of Virgin Blue.
Air New Zealand has tonight revealed it’s bought a substantial shareholding in Virgin Blue but is ruling out a takeover bid for the Australian airline.
The airline – 75% owned by the government – has notified the Australian Stock Exchange and New Zealand Stock Exchange that it has become a substantial shareholder in Virgin Blue as part of a plan to acquire a shareholding of between 10% and 14.99%.
Air New Zealand chief executive Rob Fyfe said he had confirmed to Virgin Blue chief executive John Borghetti today there was no intention to launch a takeover bid.
Australian Foreign Investment Review Board approval has been granted for Air New Zealand to buy up to 14.99% of Virgin Blue.
That amount would ensure total foreign ownership of Virgin Blue remained within the statutory limit of 49%. UK-based parent company Virgin Group has a 26% shareholding in the airline.
Mr Fyfe said the investment was part of Air New Zealand’s strategy to develop scale and reach in Asia Pacific – of which the recent transtasman alliance was a first step.
“This investment cements the emerging relationship between our two airlines and demonstrates the confidence we have in Virgin Blue both as an entity and as a partner for Air New Zealand,” said Mr Fyfe.
Air New Zealand will reveal more details about the shareholding to the NZX ahead of morning trading. The two airlines have recently won approval for a codeshare operation on flights across the Tasman.
Shares in Air New Zealand closed up 1 cent at $1.44 tonight.
Georgina Bond
Thu, 20 Jan 2011
Thu, 20 Jan 2011
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Air New Zealand cuddles up with Virgin Blue
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