Singapore Airlines Says It Will Sit Under The Takeover Threshold With Its Virgin Stake

Singapore Airlines does not intend to increase its 19.9 per cent in Virgin Australia to the takeover threshold, the airline told the Australian Financial Review.

Photo:

Although the airline may push for representation in the Virgin board, it dismissed claims it would push for greater control.

“At this point, we have no plans to increase our stake beyond 19.9 per cent,” Singapore Airlines’ regional vice-president, Subhas Menon told the the AFR.

A spokesman for ASIC said if the company were to push above 20 per cent they would need to go via one of the exception routes listed in section 611 of the Corporations Act, which includes making a takeover bid.

The relevant sections of the Act are here and here.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.