Trade Resources Logistics & Customs Singapore Airlines Will Not Object to SIA's Proposed Increase of Its Stake to 19.9%

Singapore Airlines Will Not Object to SIA's Proposed Increase of Its Stake to 19.9%

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Singapore Airlines Finalises Virgin Deals

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.

Source: http://www.tandlnews.com.au/2013/06/25/article/singapore-airlines-finalises-virgin-deals/
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Singapore Airlines Finalises Virgin Deals
Topics: Service