Virgin Australia Holdings (VAH) says Chinese conglomerate Nanshan Group has announced it will acquire a 19.98% stake in the Australian firm via the purchase of shares currently held by Air New Zealand (NZ, Auckland International).
The transaction, which is valued at AUD232.6 million (USD172.4 million), will see Nanshan Group gain a seat on Virgin Australia's board. Closure is, however, dependent on Chinese regulatory approvals.
“We believe Nanshan Group will be a very strong, positive and complimentary shareholder for Virgin Australia," Air New Zealand Chairman, Tony Carter, said. "The sale will allow Air New Zealand to focus on its own growth opportunities, while still continuing its long-standing alliance with Virgin Australia on the trans-Tasman network."
Nanshan Group has interests in various sectors including mining, construction, tourism, real estate, and aviation through its shareholding in Qingdao Airlines (QW, Qingdao Jiaodong).
The New Zealand carrier says it will consider its options regarding its remaining 6% shareholding in due course.
The announcement follows HNA Group's acquisition of a 13% stake (with the option of increasing that to 19.99%) in VAH earlier this month.
