Singapore Airlines has picked up a few extra shares in Virgin Australia, less than a week after Air New Zealand said it was considering selling off all or parts of its stake.
In a statement uploaded to the Singapore Stock Exchange, the airline’s Company Secretary, Brenton Wu, explained that the carrier now owns 23.11 percent of Virgin Australia, up from 22.91 percent.
The extra shares cost Singapore Airlines around AU$318 million and was funded by the Company’s internal sources. The carrier doesn’t expect the purchase to impact its net tangible assets and consolidated earnings per share of the Singapore Airlines Group for the current financial year.
Singapore Airlines is currently the third largest shareholder in Virgin Australia, behind Air New Zealand (25.9 percent) and Etihad (25.1 percent).
The Singaporean carrier is pegged to be the most likely to buy parts of Air New Zealand’s 25.9 percent stake in Virgin, if the carrier decides to sell.
According to Air New Zealand’s Chairman, Tony Carter, the move away from Virgin would allow the Kiwi airline to focus on its own growth. Read more.
