Etihad Airways has confirmed it will retain it’s 21.8% shareholding in Virgin Australia and its seat on the board of directors.
The airline was given until 5pm today to confirm whether it would take up its full entitlements in Virgin Australia’s $852 million capital raising announced last month. Had it chosen not to, the Abu-Dhabi based carrier’s shareholding in Virgin would have potentially been halved, and it would have lost its seat on the board.
“Etihad Airways is a long-term strategic investor and commercial partner to Virgin Australia, and remains fully committed to the partnership as a shareholder,” an Etihad Airways spokesperson said in a statement released this morning.
“The Etihad Aviation Group board has endorsed a proposal to take up its pro-rata entitlement in the Non-Renounceable Entitlement Offer for new shares in Virgin Australia which closes at 5pm AEST today. As a result, the airline will retain its 21.8 per cent shareholding in Virgin Australia and its seat on the board of directors.”
“Our comprehensive 10-year commercial agreement, which runs until 2020, is further evidence of our confidence in and support for Virgin Australia, and our commitment to the airline and Australia.”
Etihad’s decision comes after Virgin’s other major shareholders Singapore Airlines, UK-based Virgin Group, HNA Innovation and Nanshan Group all confirmed it would keep its shareholding commitments with the airline.