Jul 19 2012
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Abu Dhabi's Etihad Airways Gets OK to Up Virgin Australia Stake to 10%
Thursday, Jul 19, 2012
DUBAI (Zawya Dow Jones)-- Etihad Airways said Thursday it has received approval from the Australian government to lift its stake in Virgin Australia (VAH.AU) to a maximum 10%, the latest move in the Abu Dhabi-owned carrier's strategy to create a network of international partners to funnel traffic in and out of its hub in the U.A.E. capital.
" Etihad Airways currently has a 4.99% stake in Virgin Australia, acquired earlier this year, and had applied to the Foreign Investment Review Board (FIRB) to raise the level of its investment," Etihad said in an emailed statement.
Foreigners investing in Australia need approval from the country's Foreign Investment Review Board if they plan to take 5% or more of a company.
At 0550 GMT, Virgin Australia shares were up one Australian cent, or 2.6%, at 39 cents. They had jumped as much as 4% immediately after the news.
(Ross Kelly in Sydney contributed to this article.)
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