Air New Zealand (ANZ) says it has acquired a 14.9% stake in Virgin Blue for A$145 million ($143 million), following yesterday's announcement that it has become a substantial shareholder in the Australia-based airline group.
"Further shares were acquired off-market last night which increased Air New Zealand's relevant interest to 14.9%. The purchase of the shareholding was completed from existing cash resources," says the Star Alliance carrier.
ANZ said yesterday it had approval from Australia's Foreign Investment Review Board to buy up to 14.99% of Virgin Blue, and it plans to acquire a share of between 10% and 14.99%.
ANZ, however, does not plan to launch a takeover bid of Virgin Blue and its CEO Rob Fyfe has reconfirmed this morning that the carrier does not intend to go over 14.99%, says ANZ.
In late December 2010, New Zealand approved a proposed trans-Tasman alliance between ANZ and Virgin Blue.
"This is simply an investment in Virgin Blue that reinforces Air New Zealand's strategy to grow its business in Australasia which is continually evolving as a single aviation market. The Tasman alliance with Virgin Blue was a key step in this strategy," says Fyfe.
"The investment provides us with an interest in the number two airline in Australia and, through this, access to the opportunities in the growing Australian domestic market. Air New Zealand has no intention of entering the Australian domestic market in its own right."
ANZ will not seek representation on Virgin Blue's board for at least six months, adds Fyfe. Any representation will be decided by Virgin Blue's board and shareholders, he adds.
Source: Air Transport Intelligence news
