Etihad Airways (EY, Abu Dhabi International) will retain its current shareholding in Virgin Australia (VA, Brisbane International) after it agreed to participate in the carrier's underwritten rights issue worth AUD852 million (USD628 million).
In a statement issued shortly before a July 27 confirmation deadline, the Abu Dhabi-based carrier said: “The Etihad Aviation Group board has endorsed a proposal to take up its pro-rata entitlement in the Non-Renounceable Entitlement Offer for new shares in Virgin Australia which closes at 17h00 AEST today [July 27]. As a result, the airline will retain its 21.8% shareholding in Virgin Australia and its seat on the board of directors.”
Fellow shareholders Singapore Airlines (SQ, Singapore Changi), Air New Zealand (NZ, Auckland International), Virgin Group have already signaled their commitment as have new entrants China's HNA Group and Nanshan Group.
Following the share issuance, Virgin Australia's revised ownership will entail: Etihad (21.8%); Singapore Airlines (20.1%); HNA Group (20%); Nanshan Group (20%); Virgin Group (8.7%); and Air New Zealand (2.5%). The remaining 6.9% will float on the ASX bourse.
