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China's Nanshan buys 20% Virgin Australia stake | China's Nanshan buys 20% Virgin Australia stake |
(35 minutes later) | |
The Chinese group Nanshan has bought a 20% stake in Virgin Australia from Air New Zealand. | The Chinese group Nanshan has bought a 20% stake in Virgin Australia from Air New Zealand. |
It is the second Chinese firm after the HNA Group to invest in the Australian carrier, which hopes to benefit from growing numbers of China tourists. | It is the second Chinese firm after the HNA Group to invest in the Australian carrier, which hopes to benefit from growing numbers of China tourists. |
More than one million mainlanders visited Australia last year and that is forecast to grow to 1.5m by 2020. | |
Shares of Virgin Australia, which plans to launch direct flights to China next year, rose by 5.4% on Friday. | |
Shares of Air New Zealand rose by more than 3% in Wellington trading following the news. | Shares of Air New Zealand rose by more than 3% in Wellington trading following the news. |
Nanshan will pay 33 Australian cents a share for the slice of the company, valuing it at about 230m Australian dollars (£118m; $170m). | |
Aside from Nanshan and HNA, Singapore Airlines and Etihad Airways are also major shareholders in Virgin Australia. | |
Last month, HNA bought 13% of Virgin Australia for $118m but plans to raise that stake to about 20% in the future. | |
"We believe Nanshan Group will be a very strong, positive and complimentary shareholder for Virgin Australia," Air New Zealand Chairman Tony Carter said in a statement. | "We believe Nanshan Group will be a very strong, positive and complimentary shareholder for Virgin Australia," Air New Zealand Chairman Tony Carter said in a statement. |
"The sale will allow Air New Zealand to focus on its own growth opportunities, while still continuing its long-standing alliance with Virgin Australia on the trans-Tasman network". | "The sale will allow Air New Zealand to focus on its own growth opportunities, while still continuing its long-standing alliance with Virgin Australia on the trans-Tasman network". |