Air New Zealand has bought “a substantial shareholding” in Australian-based airline Virgin Blue, as the Kiwi carrier seeks to “develop scale and reach” in the region.
In a statement ANZ said that it has notified the Australian Stock Exchange and New Zealand Stock Exchange that it has become a substantial shareholder in Virgin Blue, “as part of a planned acquisition of a shareholding between 10 per cent and 14.99 per cent”.
The carrier stressed that is has “no intention” of making a takeover bid for Virgin Blue, in which Richard Branson’s Virgin Group has a 26 per cent shareholding.
ANZ said that it has obtained Australian Foreign Investment Review Board approval to purchase up to 14.99 per cent of Virgin Blue, which would keep the total foreign ownership of the airline within the statutory limit of 49 per cent.
The airline said that the investment was part of a strategy to “develop scale and reach in this region”, following on from the Tasman alliance between ANZ and Virgin Blue, which includes codeshare, revenue allocation, and reciprocal frequent flyer and lounge access agreements on Tasman sectors operated by the carriers.
For more information visit airnewzealand.com, virginblue.com.
