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- Release Date: 14/11/13 13:33
- Summary: GENERAL: AIR: Air New Zealand to Support Virgin Australia Rights Issue
- Price Sensitive: No
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AIR
14/11/2013 11:33
GENERAL
REL: 1133 HRS Air New Zealand Limited (NS)
GENERAL: AIR: Air New Zealand to Support Virgin Australia Rights Issue
Air New Zealand confirms that it will be fully supporting the rights issue
announced by Virgin Australia earlier today. The A$350 million capital
raising will further strengthen Virgin Australia as it consolidates and
builds its position in the Australian domestic and international airline
markets.
Air New Zealand currently holds 22.9% of Virgin Australia shares and has
regulatory approval in Australia to increase that to 25.99%. The Company will
take up its full pro rata entitlement under the rights issue and
sub-underwrite the issue together with the other major shareholders,
Singapore Airlines and Etihad Airways. In the event that additional shares
are available from the underwriting, Air New Zealand's shareholding could
increase to as much as 25.5%.
The additional investment by Air New Zealand of between A$81 million and
A$116 million will strengthen the Virgin Australia balance sheet and enable
the continuation of its strategy as it enhances its market position and
improves business performance following a period of substantial change and
growth. The completion of the rights issue will result in the termination of
the undrawn shareholder term loan facility of A$38 million from Air New
Zealand.
Air New Zealand Chief Executive Officer Christopher Luxon says, "Air New
Zealand welcomes and supports this initiative by the Virgin Australia board
and executive. We have been impressed by the ability of Virgin and its
executive team to quickly and successfully undertake a major strategy shift
to become a much more effective competitor. We have endorsed that strategy
from the time of our initial investment in 2011."
Virgin Australia's release is attached.
ENDS
End CA:00243783 For:AIR Type:GENERAL Time:2013-11-14 11:33:22
