Air New Zealand says it has reached agreement to acquire a further three per cent shareholding in Virgin Australia, which would take its stake in the Australian number 2 carrier to 22.99 per cent, and says it will consider acquiring another three per cent “to the extent it is permitted to do so under the Australian Corporations Act”.
“The additional interest affirms Air New Zealand’s strong belief and confidence in Virgin Australia and the strategy it is pursuing under the leadership of John Borghetti and his team,” Air New Zealand said in a June 6 statement.
Air New Zealand notes the purchases are subject to FIRB (Foreign Investment Review Board) and ACCC (Australian Competition and Consumer Commission) approval, and that the ACCC has advised it that it intends to conduct public enquiries on the planned increased holdings in Virgin Australia.
The New Zealand carrier says it “is not seeking a position on the board of Virgin Australia” and “nor does it have the intention of obtaining control of Virgin Australia”.
