China’s Nanshan buys stake in Virgin Australia for over $260 million

By Enterprise Monkey

Chinese conglomerate Nanshan Group has purchased a 20 percent stake in Virgin Australia from Air New Zealand for over $260 million.

Last month HNA Group — another Chinese firm with heavy involvement in the aviation sector — announced its intention to purchase 13 percent of Virgin Australia and struck a codeshare alliance with the airline.

Virgin Australia hopes to profit from the growing number of Chinese tourists visiting the continent, with more than one million holidaymakers touching down last year. The airline will be launching direct flights to China next year.

Shares of Virgin Australia rose by 5.4 percent following today’s news, while shares of Air New Zealand rose by more than three percent in Wellington trading.

Nanshan will pay Air New Zealand 33 cents a share for its stake.

Air New Zealand Chairman Tony Carter said: “We believe Nanshan Group will be a very strong, positive and complimentary shareholder for Virgin Australia.

“The sale will allow Air New Zealand to focus on its own growth opportunities, while still continuing its long-standing alliance with Virgin Australia on the trans-Tasman network.”

Follow @BizReviewAU

Read the June 2016 issue of Business Review Australia and Asia magazine


Featured Articles

Nine must-attend sustainability events for business leaders

From London to Abu Dhabi, Singapore to San Diego, these sustainability-focused events are designed to help business leaders action their ESG goals

Daniel Weise of BCG on new supply chain and procurement book

Daniel Weise, global leader of Boston Consulting Group’s procurement business line, on the timely publication of his new book, Profit From The Source

Attract and retain talent with flexible working and benefits

From office shut-downs and extra days off, to shorter weeks and work-from-anywhere policies, flexibility is the work perk must-have for summer – and beyond

Nurturing the next generation of women leaders in Africa

Leadership & Strategy

5 Mins With: Cybersecurity expert Ariel Parnes of Mitiga


People Moves: Pine Labs, Deutsche Bank, McKinsey, Fortinet

Leadership & Strategy