Singapore Airlines has received confirmation from Australia's Foreign Investment Review Board (FIRB) that it will not object to SIA's proposed increase of its stake in Virgin Australia to 19.9%.
FIRB approval will enable Singapore Airlines to complete the purchase of an additional 255.5 million shares in Virgin Australia at 48 Australian cents per share, for a total consideration of A$122.6 million. The transaction is expected to be completed by the end of next week.
Singapore Airlines acquired an initial 10% of Virgin Australia in late 2012 through an injection of funds in Virgin Australia Holdings. The additional shares, representing a 9.9% stake, will be acquired from the Virgin Group.
Singapore Airlines and Virgin Australia entered into a long-term partnership in 2011, encompassing code-sharing, reciprocal frequent-flyer program benefits and lounge access, co-ordinated schedules to provide seamless connections, and joint sales, marketing and distribution activities.
Singapore Airlines has also completed the sale of its 49% stake in Virgin Atlantic Ltd to Delta Air Lines.
As announced on 11 December 2012, Delta agreed to pay US$360 million in cash for Singapore Airlines' entire shareholding in the UK-based airline group.
Commercial arrangements between Singapore Airlines and Virgin Atlantic, encompassing code-sharing, frequent-flyer program cross participation and reciprocal lounge access, will remain in place.
Globally, Singapore Airlines' network, including Singapore Airlines Cargo and SilkAir destinations, covers a total of 105 destinations in 39 countries.
