Virgin Australia welcomes new Chinese stakeholders with cash call

Sydney

VIRGIN Australia Holdings Ltd, backed by five airlines, asked its shareholders for A$852 million (S$853.6 million) in fresh capital, just days after two Chinese conglomerates agreed to buy almost a third of the company.

The Brisbane-based carrier plans to sell new stock at 21 Australian cents apiece for every share already owned, a 29 per cent discount to Tuesday's closing price, it said in a statement on Wednesday. It's Virgin Australia's second cash call in less than three years and the airline's stock tumbled in Sydney.