AIR
30/03/2016 13:54
ASSET
PRICE SENSITIVE
REL: 1354 HRS Air New Zealand Limited (NS)
ASSET: AIR: Air New Zealand reviews its financial investment in Virgin
Air New Zealand (NZX: AIR) advises that it is exploring options with respect
to its shareholding in Virgin Australia Holdings Limited (Virgin Australia or
the Company), including a possible sale of all, or part of its shareholding.
Air New Zealand has retained First NZ Capital and Credit Suisse to advise it
on options with respect to its shareholding in Virgin Australia.
Virgin Australia has undertaken a successful transformation programme over
the past five years that has seen it evolve from a low cost carrier to a
diversified airline group.
As Virgin Australia now embarks on the next phase of its programme of
optimising its balance sheet and capital structure, Air New Zealand's
Chairman, Tony Carter, has advised Elizabeth Bryan, the Chairman of Virgin
Australia, that Air New Zealand will undertake a review of its financial
investment in the Company, including possible alternate uses of capital
currently deployed in Virgin Australia.
Mr Carter says Air New Zealand does not want a large minority equity position
in Virgin Australia as it focuses on its own growth opportunities.
Air New Zealand Chief Executive Officer Christopher Luxon says the airline is
supportive of the significant transformation that Virgin Australia has
undergone over the past five years, under John Borghetti's leadership.
"We look forward to continuing our partnership on the Tasman alliance,
providing customers of both airlines with the most comprehensive trans-Tasman
network," Mr Luxon says.
Air New Zealand intends to coordinate its review of its investment in Virgin
Australia with that airline's broader capital structure review, and looks
forward to continuing its strong relationship with Virgin Australia and
working constructively together.
As a result of this announcement, Christopher Luxon will resign from the
board of Virgin Australia, effective immediately.
Further details on the outcomes of the review will be provided in due course.
Ends
End CA:00280020 For:AIR Type:ASSET Time:2016-03-30 13:54:34
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