Virgin Australia shareholders pitch in for capital raising
Etihad Airways and Singapore Airlines remain largest shareholders.
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Etihad Airways has taken up its full entitlement in the Virgin Australia's $A852 million capital raising, maintaining its shareholding on an equal footing with Singapore Airlines.
The Abu Dhabi-based airline will spend about $A186 million on the 1:1 non-renounceable offer at 21Ac a share to keep its 21.8% stake.
“Etihad Airways is a long-term strategic investor and the commercial partner to Virgin Australia and remains fully committed to the partnership as a shareholder,” The Australian reported an unnamed spokesman as saying.
Singapore Airlines has said it will spend up to $A268 million to increase its stake to a maximum of 25.9%. It holds about 815 million shares or 23.1% but that is unlikely to increase as Etihad is taking up its full share.
Meanwhile, Virgin's capital will be boosted further when the HNA Group, owner of Hainan Airlines, receives approval for its new shareholding. This will increase its stake to 19.99% at a cost of $US300 million.
The HNA top-up placement is subject to shareholder approval. The major airline shareholders have indicated they will not oppose this.
Another Chinese carrier, Nanshan Group, is taking up its entitlement for its 19.9% shareholding, which it bought from Air New Zealand. It now owns just 2.5% and will spend about $A20 million for its share in the capital raising.
Richard Branson’s Virgin Group has 8.7% with the rest in public hands. The full result will be known next week.
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Nevil Gibson
Thu, 28 Jul 2016
Thu, 28 Jul 2016
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Virgin Australia shareholders pitch in for capital raising
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