Chinese companies tightening hold on Virgin Australia in setback for SIA

Sydney

CHINESE companies strengthened their grip on Virgin Australia Holdings Ltd as a second conglomerate bought a stake in the carrier, handing a blow to key shareholder Singapore Airlines Ltd (SIA).

Nanshan Group will buy 811 million shares, or about 20 per cent of Australia's second-largest airline from Air New Zealand Ltd, the Auckland-based carrier said on Friday. At a purchase price of 33 Australian cents apiece, the sale would value the stake at about A$268 million (S$268.8 million). Nanshan's assets stretch from aluminium to property and include the two-year-old Qingdao Airlines.