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SQ To Sell Stake In VS  
User currently offlineYOWza From Canada, joined Jul 2005, 4899 posts, RR: 15
Posted (7 years 3 months 2 weeks 15 hours ago) and read 5837 times:

Just saw this covered on a BBC Business segment. Analysts are saying that it is likely to sell for about $2B (US) so SQ will have made $0.5B over 8 years of involvement with VS.

So where does this leave things? Who is going to come in and buy the 49% dare I say a Gulf carrier?

Additionally this is likely to trigger other airline acquisitions, so IB and AZ might be dealt with sooner rather than later.

YOWza


12A whenever possible.
21 replies: All unread, jump to last
 
User currently offlineANstar From United Kingdom, joined Nov 2003, 5263 posts, RR: 7
Reply 1, posted (7 years 3 months 2 weeks 14 hours ago) and read 5804 times:

Perhaps this is also why Virgin Blue were able to short list names for the new airline with the name Virgin in them?

User currently offlineKiwiandrew From New Zealand, joined Jun 2005, 8579 posts, RR: 13
Reply 2, posted (7 years 3 months 2 weeks 14 hours ago) and read 5771 times:
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Quoting YOWza (Thread starter):
So where does this leave things? Who is going to come in and buy the 49% dare I say a Gulf carrier?

perhaps if SQ sell their stake
( that is by no means certain according to this article http://www.smh.com.au/news/business/...sale/2007/07/09/1183833400931.html ) LH which has a high level of fleet commonality with VS current fleet and a stake in BD might be interested in trying to bring the two together ( probably over both SMB and SRB's dead bodies  Wink ).

Of course if SQ sell their stake this might also mean that DJ can use the Virgin name on their proposed Australia-US flights instead of having to create a separate brand to keep SQ happy .



Moderation in all things ... including moderation ;-)
User currently offlineN328KF From United States of America, joined May 2004, 6491 posts, RR: 3
Reply 3, posted (7 years 3 months 2 weeks 14 hours ago) and read 5771 times:

Quoting YOWza (Thread starter):
So where does this leave things? Who is going to come in and buy the 49% dare I say a Gulf carrier?

I'm sure right-of-first-refusal lies with Virgin Group.



When they call the roll in the Senate, the Senators do not know whether to answer 'Present' or 'Not guilty.' T.Roosevelt
User currently offlineIkramerica From United States of America, joined May 2005, 21544 posts, RR: 59
Reply 4, posted (7 years 3 months 2 weeks 14 hours ago) and read 5639 times:

Quoting N328KF (Reply 3):
I'm sure right-of-first-refusal lies with Virgin Group.

Sounds logical. And I wonder how the VS A380 orders play into this. Would that factor into the deal (if SQ were to take them off VS's hands)?



Of all the things to worry about... the Wookie has no pants.
User currently offlineBill142 From Australia, joined Aug 2004, 8457 posts, RR: 8
Reply 5, posted (7 years 3 months 2 weeks 12 hours ago) and read 5388 times:

Quoting ANstar (Reply 1):
Perhaps this is also why Virgin Blue were able to short list names for the new airline with the name Virgin in them?

Perhaps. Documents lodged with the IASC suggest the airline, or at least the operating company, will be called Virgin Blue International Airlines. It does reference the naming competition.


User currently offlineAirbusA6 From United Kingdom, joined Apr 2005, 2013 posts, RR: 0
Reply 6, posted (7 years 3 months 2 weeks 10 hours ago) and read 5204 times:

If Virgin Media (a major UK telecom/cable tv company in which SRB has a stake) is take over by private equity (which seems likely) SRB will have some more funds to buy back part or all of the stake...


it's the bus to stansted (now renamed national express a4 to ruin my username)
User currently offlineCarledwards From United Kingdom, joined May 2004, 262 posts, RR: 0
Reply 7, posted (7 years 3 months 2 weeks 10 hours ago) and read 5128 times:

Quoting AirbusA6 (Reply 6):
If Virgin Media (a major UK telecom/cable tv company in which SRB has a stake) is take over by private equity (which seems likely) SRB will have some more funds to buy back part or all of the stake...

very true although, I do not recall Branson ever buying something like this back?
I think it is very unlikely he would in this case too?



Directoria
User currently offlineBill142 From Australia, joined Aug 2004, 8457 posts, RR: 8
Reply 8, posted (7 years 3 months 2 weeks 10 hours ago) and read 5097 times:

Quoting Carledwards (Reply 7):
very true although, I do not recall Branson ever buying something like this back?
I think it is very unlikely he would in this case too?

He did everything he could to try gain control of Virgin Blue from Patrick Corp.


User currently offlineGordonsmall From UK - Scotland, joined Jun 2001, 2142 posts, RR: 21
Reply 9, posted (7 years 3 months 2 weeks 9 hours ago) and read 5057 times:

Quoting Carledwards (Reply 7):
very true although, I do not recall Branson ever buying something like this back?

Branson floated the Vrigin group (well, parts of it anyway, though not the airline) on the stock market in the late 80's/early 90's and then promptly bought it all back when the stock market crashed.



Statistically, people who have had the most birthdays tend to live the longest.
User currently offlineZkpilot From New Zealand, joined Mar 2006, 4840 posts, RR: 9
Reply 10, posted (7 years 3 months 2 weeks 9 hours ago) and read 5057 times:

Could this mean that with SQ no longer blocking VS, we could see VS join *A possibly with a tie-up with BD?

That would be a very interesting proposition... In Australia it would mean that *A would finally get a carrier after AN collapsed 2001. Perhaps NZ could be interested in some equity involvement... VS and NZ are quite similar carriers in many ways and are at the opposite ends of the world from each other...could be a good partnership especially with DJ in Australia...  Smile



56 types. 38 countries. 24 airlines.
User currently offlineCarledwards From United Kingdom, joined May 2004, 262 posts, RR: 0
Reply 11, posted (7 years 3 months 2 weeks 9 hours ago) and read 4926 times:

Quoting Zkpilot (Reply 10):
VS and NZ are quite similar carriers in many ways and are at the opposite ends of the world from each other...could be a good partnership especially with DJ in Australia...

yes, but the new Virgin Blue trans-pacific flights I were under the impression based on a low cost, 'Oasis Hong Kong' business model? So these would in thoery be competing with Air New Zealand.

Quoting Gordonsmall (Reply 9):
Branson floated the Vrigin group (well, parts of it anyway, though not the airline) on the stock market in the late 80's/early 90's and then promptly bought it all back when the stock market crashed.

this is a very 'one-off' example though. I would be very surprised if Branson brought these shares back.



Directoria
User currently offlineN328KF From United States of America, joined May 2004, 6491 posts, RR: 3
Reply 12, posted (7 years 3 months 2 weeks 9 hours ago) and read 4907 times:

Quoting Carledwards (Reply 7):
very true although, I do not recall Branson ever buying something like this back?
I think it is very unlikely he would in this case too?



Quoting Bill142 (Reply 8):
He did everything he could to try gain control of Virgin Blue from Patrick Corp.

He also tried on numerous occasions to buy back Virgin Records. He had sold it in the early 1990s to save Virgin Atlantic. Later, when he was on a more stable footing, he wanted the record company back but EMI wouldn't sell.



When they call the roll in the Senate, the Senators do not know whether to answer 'Present' or 'Not guilty.' T.Roosevelt
User currently offlineUAL777UK From United Kingdom, joined Nov 2005, 3356 posts, RR: 1
Reply 13, posted (7 years 3 months 2 weeks 9 hours ago) and read 4891 times:

It does seem all very vaque at the moment, but you know what they say..."Theres no smoke without fire".

http://www.reuters.com/article/topNews/idUKL0955460420070709?rpc=44


User currently offlineAirbusA6 From United Kingdom, joined Apr 2005, 2013 posts, RR: 0
Reply 14, posted (7 years 3 months 2 weeks 7 hours ago) and read 4736 times:

Quoting Carledwards (Reply 7):
Quoting AirbusA6 (Reply 6):
If Virgin Media (a major UK telecom/cable tv company in which SRB has a stake) is take over by private equity (which seems likely) SRB will have some more funds to buy back part or all of the stake...

very true although, I do not recall Branson ever buying something like this back?
I think it is very unlikely he would in this case too?

I believe a Japanese company (not an airline) had a stake is VS back in the late 80s(?) which SRB bought back well before the subsequent sale of a larger stake to SQ. SRB does tend to but and sell stakes in his companies, depending on
a) What other investments he fancies doing instead, and
b) Whether he need some short term cash!



it's the bus to stansted (now renamed national express a4 to ruin my username)
User currently offlineSunriseValley From Canada, joined Jul 2004, 5053 posts, RR: 5
Reply 15, posted (7 years 3 months 2 weeks 6 hours ago) and read 4547 times:

Quoting Kiwiandrew (Reply 2):
probably over both SMB and SRB's dead bodies Wink ).

These two good ole' boys need to put up or shut up !

Quoting Zkpilot (Reply 10):
Perhaps NZ could be interested in some equity involvement... VS and NZ are quite similar carriers in many ways

I can see no reason for the NZ major shareholder to get involved in an airline that is of no strategic interest to N.Z. No doubt there are private equity players who have doodled on the back of an envelope how such a combination could perhaps work. My suspicion is that the present N.Z. Govt.for ideological reasons would insist on all sorts of conditions that would make such a deal very difficult to do

Quoting Bill142 (Reply 8):
He did everything he could to try gain control of Virgin Blue from Patrick Corp.

Except put up enough money to make the deal of interest to Patrick ! Branson is what I would describe as a 10c millionaire, well set with paper assets but with little liquidity.


User currently offlineKappel From Suriname, joined Jul 2005, 3533 posts, RR: 17
Reply 16, posted (7 years 3 months 1 week 6 days 4 hours ago) and read 2970 times:

Well, AF/KL stated (IIRC it was Spinetta himself) that they were looking at airline aquisitions not so long ago. Perhaps they will join the bidding.


L1011,733,734,73G,738,743,744,752,763,772,77W,DC855,DC863,DC930,DC950,MD11,MD88,306,319,320,321,343,346,ARJ85,CR7,E195
User currently offlineLHRBlueSkies From United Kingdom, joined Jan 2007, 493 posts, RR: 2
Reply 17, posted (7 years 3 months 1 week 6 days 3 hours ago) and read 2955 times:

I would be very surprised if SQ sell their VS stake, but maybe they need the cash for buying into more Chinese airlines?

BA and the TPG (?) group will go for IB. AF/Kl might go for AZ, but don't count Air One out yet - whoever gets AZ will have one heck of a job!

BD/VS tie-up...unlikely now Bishop can fly long-haul ex-LHR....but you never know...



flying is the safest form of transport - until humans get involved!
User currently offlineJoFMO From Germany, joined Jul 2004, 2211 posts, RR: 0
Reply 18, posted (7 years 3 months 1 week 5 days 19 hours ago) and read 2740 times:

There is an interesting article in the Telegraph which spins the theorie of LH bying out SQ and forming a BMI/VS/LH thing.

http://www.telegraph.co.uk/money/mai...=/money/2007/07/10/cnvirgin110.xml


User currently offlineKiwiandrew From New Zealand, joined Jun 2005, 8579 posts, RR: 13
Reply 19, posted (7 years 3 months 1 week 5 days 14 hours ago) and read 2630 times:
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Quoting JoFMO (Reply 18):
There is an interesting article in the Telegraph which spins the theorie of LH bying out SQ and forming a BMI/VS/LH thing.

bloody Telegraph ,didnt even have the decency to quote my post as a source for this story  Wink

Quoting Kiwiandrew (Reply 2):
perhaps if SQ sell their stake
( that is by no means certain according to this article http://www.smh.com.au/news/business/...sale/2007/07/09/1183833400931.html ) LH which has a high level of fleet commonality with VS current fleet and a stake in BD might be interested in trying to bring the two together ( probably over both SMB and SRB's dead bodies ).



Moderation in all things ... including moderation ;-)
User currently offlineSQ772 From Singapore, joined Nov 2001, 1792 posts, RR: 5
Reply 20, posted (7 years 3 months 1 week 5 days 13 hours ago) and read 2587 times:

Quoting N328KF (Reply 3):
Quoting N328KF (Reply 3):
I'm sure right-of-first-refusal lies with Virgin Group.

Sounds logical. And I wonder how the VS A380 orders play into this. Would that factor into the deal (if SQ were to take them off VS's hands)?

As I understand it, under the terms of the 1999 agreement with SIA, Branson has NO RIGHT of first refusal over any sale. So it's really dependent on who can give SIA the best offer for that 49% stake.



There's always a better way to fly...
User currently offlineKappel From Suriname, joined Jul 2005, 3533 posts, RR: 17
Reply 21, posted (7 years 3 months 1 week 5 days 13 hours ago) and read 2575 times:

Quoting LHRBlueSkies (Reply 17):
AF/Kl might go for AZ

I really doubt AF/KL will buy AZ. IIRC they said they are not even considering buying AZ. IMHO it would be a very bad idea anyway. They'd be better off buying the VS stake IMHO.



L1011,733,734,73G,738,743,744,752,763,772,77W,DC855,DC863,DC930,DC950,MD11,MD88,306,319,320,321,343,346,ARJ85,CR7,E195
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