Virgin Australia Holdings Ltd
(ASX:VAH) has announced it intends to raise $852 million in equity, through a pro-rata entitlement offer to shareholders at 21 cents per share.
Virgin’s major stakeholders are Singapore Airlines, HNA Innovation, Virgin Group, Nanshan Group and Air New Zealand. The company says its major stakeholders have made binding commitments to take up their pro-rata entitlements.
Virgin expects to raise total gross proceeds of over $1 billion in new equity capital (with its proposed $852 million equity raising, and a placement of $159 million to HNA Innovation).
The company says its proposed equity raising and placement will occur after HNA Innovation receives regulatory approval from Chinese authorities.
Virgin reported a net profit of $62.5 million at 31 December 2015.
