SQ Acquires 10% Stake in Virgin Australia

Discussion in 'Singapore Airlines | KrisFlyer' started by SQ LPP, Oct 29, 2012.  |  Print Topic

  1. SQ LPP
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    SQ LPP Gold Member

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    SIA To Acquire Strategic Stake In Virgin Australia


    30 October 2012 - Singapore Airlines is to acquire a 10% stake in Virgin Australia in an agreement that will further strengthen ties between the two partner airlines.

    The strategic stake will be acquired through a placement of new shares by Virgin Australia Holdings. Singapore Airlines will purchase 245.57 million shares at 42.88 Australian cents per share for a total consideration of A$105.3 million.

    Under the subscription agreement, Singapore Airlines will have anti-dilution rights to maintain a 10% interest in Virgin Australia, in the event of an equity issuance from another transaction that is announced by Virgin Australia on 30 October 2012.

    Australian Foreign Investment Review Board (FIRB) approval has been obtained for the share purchase, which is expected to be completed on 16 November 2012.

    ...

    Singapore Airlines and Virgin Australia entered into a long-term partnership last year, encompassing codesharing, reciprocal frequent-flyer programme benefits and lounge access, co-ordinated schedules to provide seamless connections, and joint sales, marketing and distribution activities. Expanded codeshare ties are under discussion and details will be announced in due course.
     
  2. Fredrik
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    Fredrik Silver Member

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    It means SQ will be minority owner in two Virgin companies. Is it a trend?
     
  3. drewbles
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    drewbles Gold Member

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    It's great news for us. DJ are taking on QF on every front now. DJ vs QF. TT vs JQ (DJ bought 60% of TT) and XR (DJ now owns XR) vs QF (Qantas link arm).

    As a Virgin and Qantas elite I'm excited to see where this goes. DJ are going from strength to strength and QF are slipping. Fast.
     
  4. Valentine

    Valentine Silver Member

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    What are the chances we'll be seeing both Virgin Atlantic and Australia join Star Alliance soon? ;)
     
  5. Scottrick
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    Scottrick Gold Member

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    Maybe we'll get Virgin America, too, and I can finally fly something other than a CR7 to LAX. Oh, wait, then I'd have to put up with the mood lighting...
     

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