Etihad okays VA/HNA deal, holds back from rights participation

BTN News
Thursday, 16 June 2016

As part of Virgin Australia's (VA's) planned A$852 million rights issue, Air New Zealand will participate even though it still plans to sell most of its stake to China's Nanshan Group.


VA already had announced plans to raise A$159 million selling shares to China's HNA Group.


Now Air New Zealand, Singapore Airlines, HNA, Virgin Group and Nanshan all have committed to take up the rights offer and if Air NZ hasn't completed the sale of its Virgin stake to Nanshan by the due date, Air NZ will pick up Nanshan's share of the rights entitlement offer.


Also, Singapore Air, HNA and Virgin Group will underwrite entitlements not taken up by other shareholders, and HNA can top up its holding to ensure it reaches its targeted 19.99 per cent stake in VA, subject to a maximum investment of US$300 million.


The other major shareholder - Etihad Airways - has not committed to participate, but has told Virgin Australia it will approve the HNA top-up placement.


Virgin Australia plans to cut its fleet size over the next three years and hopes to save an annual A$300 million by the end of 2019.

Etihad okays VA/HNA deal, holds back from rights participation

BTN News
Thursday, 16 June 2016

As part of Virgin Australia's (VA's) planned A$852 million rights issue, Air New Zealand will participate even though it still plans to sell most of its stake to China's Nanshan Group.


VA already had announced plans to raise A$159 million selling shares to China's HNA Group.


Now Air New Zealand, Singapore Airlines, HNA, Virgin Group and Nanshan all have committed to take up the rights offer and if Air NZ hasn't completed the sale of its Virgin stake to Nanshan by the due date, Air NZ will pick up Nanshan's share of the rights entitlement offer.


Also, Singapore Air, HNA and Virgin Group will underwrite entitlements not taken up by other shareholders, and HNA can top up its holding to ensure it reaches its targeted 19.99 per cent stake in VA, subject to a maximum investment of US$300 million.


The other major shareholder - Etihad Airways - has not committed to participate, but has told Virgin Australia it will approve the HNA top-up placement.


Virgin Australia plans to cut its fleet size over the next three years and hopes to save an annual A$300 million by the end of 2019.