Buyer snaps up $7m stake in Virgin
The buyer was unknown but it comes just weeks after Middle East airline Etihad gained approval from the Foreign Investment Review Board to increase its stake in Virgin from 10 to 19.9 per cent.
Virgin's two largest shareholders, Air NZ and Singapore Airlines, confirmed they were not buyers of the stock on Tuesday. Etihad was unable to respond to inquiries by the time of going to press.
The single parcel of 13.5 million shares sold for 44.5¢ apiece, a total of almost $7 million.
It amounted to less than 1 per cent of Virgin's issued capital.
Air New Zealand wants to boost its stake from 23 to 26 per cent but still needs approval from FIRB to do so.
Singapore Airlines also became Virgin's second-largest shareholder several months ago after buying half of Sir Richard Branson's holdings in the Australian airline.
It comes as Qantas keeps funnelling money into the coffers of states and territories rather than Tourism Australia.
Qantas' latest three-year deal is a $7 million agreement with the Northern Territory.
The decision to allocate funds to the states rather than Tourism Australia follows a breakdown in relations between Qantas boss Alan Joyce and the tourism body's chairman, Geoff Dixon, late last year.
Frequently Asked Questions about this Article…
A single parcel of 13.5 million Virgin Australia shares changed hands, selling for 44.5 cents each — a total of almost $7 million. It was the airline's biggest day of trading since Air New Zealand became the largest shareholder early last month.
The buyer was not identified in the article. Air New Zealand and Singapore Airlines confirmed they were not the buyers, and Etihad had not responded to enquiries by the time the story went to press.
The parcel amounted to less than 1% of Virgin Australia's issued capital, so it was a sizeable single trade but a relatively small portion of total shares.
Air New Zealand became the largest shareholder earlier and currently wants to boost its stake from 23% to 26% (it still needs FIRB approval). Etihad recently gained FIRB approval to increase its stake from 10% to 19.9%. Singapore Airlines became the second-largest shareholder after buying half of Sir Richard Branson's holdings.
Yes. The article notes involvement of the Foreign Investment Review Board (FIRB): Etihad gained FIRB approval to increase to 19.9%, and Air New Zealand still needs FIRB approval to boost its stake from 23% to 26%.
Because the parcel represented less than 1% of issued capital and major shareholders such as Air New Zealand and Singapore Airlines said they were not buyers, it is unlikely this trade materially changed the rankings of the largest shareholders.
The article also said Qantas is directing funds to state and territory governments rather than Tourism Australia. Its latest three‑year deal is a $7 million agreement with the Northern Territory, a move linked to a breakdown in relations between Qantas CEO Alan Joyce and Tourism Australia chairman Geoff Dixon.
Investors may want to monitor official announcements about major shareholder movements and FIRB approvals (for example, Air New Zealand's planned increase to 26%), as well as any company disclosures related to significant block trades or strategic investor changes.
Call 1300 880 160
Start a chat
Schedule a call
