MACQUARIE: Virgin Australia Could Be Taken Private

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Macquarie Bank analysts have raised the possibility that Virgin Australia’s major shareholders could take the airline private.

In a note reported on by Fairfax Media, analysts said that with so few shares not owned by major shareholders, a delisting was a serious possibility:

With the free float of Virgin halving over the past 12 months, clearly the probability of Virgin being privatised at some stage is looking more likely with every incremental stake being acquired.

Last week Etihad upped its Virgin stake to 19.9%.

Air New Zealand, the largest shareholder, is also considering increasing its stake from 23% to 26%.

The analysts say Air New Zealand and Singapore Airlines — which has a 19% stake — are the most likely to form a alliance to acquire Virgin in the medium term.

There’s more here.

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