SIA's Virgin Australia stake could rise to 22.1%
Carrier to subscribe to Virgin's A$350m equity issue, along with Air NZ, Etihad
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[SINGAPORE] Singapore Airlines (SIA) could boost its stake in Virgin Australia (VA) to 22.1 per cent by subscribing to Virgin's A$350 million (S$407 million) equity issue, undertaken to pare debt against the backdrop of a tough domestic operating environment and stiff competition.
VA's other major shareholders, Air New Zealand (Air NZ) and Abu Dhabi's Etihad Airways, are also supporting the capital-raising exercise.
Under the non-renounceable entitlement offer, VA shareholders will be able to buy five new shares for every 14 existing shares held on record as at Nov 19, at 38 Australian cents a share; this is a discount of 6.17 per cent to Wednesday's closing price of 40.5 Australian cents.
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