Virgin Australia Holdings Limited (ASX:VAH) stakeholder Singapore Airlines has increased its holding in Australia’s second largest carrier to 19.9 per cent a day after Virgin’s Tiger Airways takeover was given the all clear by the competition watchdog.
The stake increase falls just below the threshold that would require approval from the Foreign Investment Review Board.
Singapore Airlines, majority owned by the Singaporean government paid approximately $246 million for 255 million shares at 48 cents per share through its investment fund Temasek Holdings.
Yesterday, the Australian Competition and Consumer Commission said Virgin’s proposed 60 per cent acquisition of Tiger was unlikely to lead to a substantial lessening of competition in the Australian market.
Virgin Australia generated a net profit of $23 million in the first half of the current financial year.
VAH Price at posting:
45.3¢ Sentiment: None Disclosure: Held
