ANZ acquires substantial stake in Virgin Blue

Air New Zealand recently took a significant step ahead to further expand its reach by acquiring a substantial shareholding in the Australia based Virgin Blue airline.

Air New Zealand management released a statement saying that it has notified about acquiring substantial shareholdings “as part of a planned acquisition of a shareholding between 10 per cent and 14.99 per cent” of the Virgin Blue to the Australian Stock Exchange and New Zealand Stock Exchange.

The management also said that they do not have any intention of making a takeover bid for Virgin Blue, where the Richard Branson’s Virgin Group already possesses a 26 percent shareholding.

The carrier has already got the approval to make a purchase of 14.99 percent stake of Virgin Blue by Australian Foreign Investment Review Board. The stake figure will keep the foreign ownership of the airline within the permissible legal limit of 49 percent.

The two airlines are also the members of Tasman Alliance, and have since been into codeshare, revenue allocation, and reciprocal frequent flyer and lounge access agreements on Tasman sectors that are operated by the carriers.