Sharechat Logo

Air NZ plans to raise stake in Virgin Australia to 25.9 percent after gaining approvals

Friday 4th October 2013

Text too small?

Air New Zealand, the national carrier, plans to raise its stake in Virgin Australia Holdings to 25.9 percent after gaining the necessary approvals, cementing its presence in the Australian market.

Air New Zealand received approval from the Australian Treasurer to lift its stake after gaining consent from the Foreign Investment Review Board and the antitrust Australian Competition and Consumer Commission, the Auckland-based airline said in a statement.

The New Zealand carrier plans to acquire an additional 3 percent of shares in Virgin Australia under an existing forward contract, taking its holding to 22.9 percent, and acquire a further 3 percent of the stock under creep provisions in Australian regulations, the airline said.

"We are fully supportive of the Virgin management team and strategy which provide an ideal complement to our own network and importantly, an opportunity to participate in the Australian market with a respected partner," Air New Zealand chief executive Christopher Luxon said in the statement.

Air New Zealand formed a partnership with Virgin, providing links with its flights into Australia, after the failure of its Australian-based airline Ansett in 2001. Virgin Australia's other major shareholders are Virgin Group and Singapore Airlines.

Shares in Air New Zealand last traded at $1.495, having gained 15 percent this year. The stock is rated a 'buy', according to the Reuters consensus of six analysts. Some 74 percent of the stock is owned by the government which plans to sell some of the shares as part of its policy to sell minority stakes in state assets.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Air NZ keeps balance sheet plump, holds back on dividends as fleet renewal looms
Air New Zealand plans to close Auckland maintenance facility, cut 180 jobs, union says
Air NZ's Safe Air unit cuts 84 jobs in Blenheim as contracts end
Air NZ agrees to settle cartel case, expects earnings at upper end of guidance
Air NZ lifts stake in Virgin Australia to 23 percent , may creep up to 26 percent
Air NZ backs down on challenge to cargo suit against regulator
Air New Zealand reviews Japan flights as decline in yen makes travel more expensive
Ex-Foodstuffs boss Carter to head up Air NZ board
Air NZ shares jump 5.6 percent as airline flags annual earnings to more than double
Air NZ 1H profit soars