Etihad Airways is buying Virgin Australia Holdings Limited
(ASX:VAH) shares after the Foreign Investment Review Board approved its bid to lift its stake to 19.9 per cent, according to media reports.
Etihad's chief executive James Hogan says the group has been buying Virgin shares on-market since the approval.
Mr Hogan says the move is part of the airline’s long term strategy.
Exactly how many shares Etihad has bought, and to what extent it has lifted its stake, is expected to be revealed in the next few days.
As a substantial shareholder in Virgin, Etihad is required to disclose to the market when it increases its holding by more than one per cent.
Virgin Australia generated a net profit of $23 million in the first half of fiscal 2013.
