Virgin Australia's bid for Skywest gains first approval

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Virgin Australia's proposed acquisition of regional carrier Skywest has been approved by the Securities Industry Council of Singapore.

The buyout is still subject to approval from the Australian Competition and Consumer Commission, the Australian Foreign Investment Review Board and the High Court of Singapore, as well as Skywest shareholders.

Virgin has proposed a full takeover of Perth-based Skywest under a scheme where it will pay Australian dollars (A$) 0.225 ($0.236) in cash and issue 0.53 new shares in Virgin for each share in Skywest.

Virgin says acquiring Skywest will allow it to accelerate its push into the regional aviation market and give it more exposure to the lucrative resource charter market.