Home UAE Abu Dhabi Virgin Australia Seeks $325m In Rights Issue Etihad Airways, one of Virgin Australia’s shareholders, is committed to the offer and will raise its exposure via the capital raising. by Reuters November 14, 2013 Virgin Australia Holdings Ltd said on Thursday it plans to raise A$350 million ($325 million) through a rights offer supported by its major shareholders Singapore Airlines Ltd, Air New Zealand and Etihad Airways. Virgin has been struggling with difficult domestic economic conditions and strong competition, having just posted a full-year loss in August. The offer allows eligible shareholders to buy five new shares for every existing 14 shares held on November 19, 2013 and is priced at A$0.38 per new share, a five per cent discount to its Wednesday close of A$0.41. “This capital raising is designed to enhance liquidity and the gearing position of Virgin Australia to ensure we are in a stronger position moving forward,” said CEO John Borghetti in a statement. “Given the ongoing uncertain economic environment, competitive challenges and market volatility, we are unable to provide profit guidance for the 2014 financial year at this time,” Borghetti added. Its major shareholders – Air New Zealand, Etihad Airways and Singapore Airlines – are all committed to the offer and will raise their exposure via the capital raising. 0 Comments