Air New Zealand may ditch Virgin Australia shareholding
VIRGIN Australia may soon lose its biggest shareholder, with Air New Zealand looking to sell its stake in the airline.
New Zealand's flag carrier currently owns just over a quarter of Virgin Australia, but has today revealed it is looking at selling some or all of that stake.
Air New Zealand is employing First NZ Capital and Credit Suisse to advise it on options with respect to its Virgin stake.
However, the airline looks determined to at least substantially reduce its holding, with its chairman Tony Carter indicating to his Virgin Australia counterpart Elizabeth Bryan that his company does not want a large minority equity position.
Instead, Air New Zealand wants to focus on its own growth opportunities, and plans to unlock the cash tied up in its Virgin Australia shareholding for other uses.