Singapore Airlines says no plans to take major Virgin stake
Singapore Airlines has rejected speculation it considered taking over Virgin Australia, saying it has not considered taking a majority stake in the airline, preferring it remained independent.
Singapore Airlines said it had committed to supporting Virgin’s $852 million capital raising that could increase its stake to 25.9 per cent from the present 20.09 per cent if other shareholders do not take up their entitlements.
“Singapore Airlines 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,” it said in a statement.
Singapore Airlines rarely makes public statements or responds to media reports. .
Singapore Airlines stake in the Australian carrier could climb closer to 26 per cent if other airlines don’t take up …
Singapore Airlines stake in the Australian carrier could climb closer to 26 per cent if other airlines don’t take up their entitlements. re Airlines economy
Singapore Airlines was tipped as the most likely buyer of Air New Zealand’s 26 per cent stake in Virgin when it went on the market. Chinese conglomerate Nanshan Group acquired the stake.
While Singapore Airlines is understood to have entered the due diligence process along with a string of other potential buyers, it decided not to significantly boost its stake.
Singapore Airlines, which is more than 50 per cent owned by sovereign wealth fund Temasek, has a strong balance sheet and could have afforded to buy the stake.
The Asian carrier said it was committed to its commercial partnership with Virgin. Virgin told staff on Friday it was hiring global aviation consultant John Thomas to head up its domestic and international operations as part of a management reshuffle.
