Interest in Virgin Australia stake grows

Interest in Virgin Australia stake grows

Sir Richard Branson said Air New Zealand Ltd.’s stake in Virgin Australia Holdings Ltd. has attracted several potential buyers and talks are under way about a possible deal, according to Bloomberg.

The billionaire founder of Virgin Group Ltd said “there are discussions going on with them and a number of different parties and we will watch with interest what happens.”

“Whether or not we will end up buying it, we will have to see. I am a great believer in Virgin Australia,” Branson added.

Branson said in an interview with Bloomberg Television from Sydney on Thursday that it was not sure if the Virgin Group itself, which owns about 10 percent of Virgin Australia, will increase its stake in Australia’s second-largest airline.

Virgin Australia shares were unchanged at 27.5 Australian cents at 12:51 p.m. in Sydney, valuing the Brisbane-based company at A$970 million ($699 million).

Air New Zealand said in earlier this year it may sell its 26 percent stake as Virgin Australia carries out a capital review.

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