WELLINGTON, June 10 (Reuters) - Air New Zealand AIR.NZ Friday said it has agreed to sell a 19.98 percent stake in Virgin Australia Holdings Limited VAH.AX to China's Nanshan Group NANSH.UL .
In a release to the New Zealand Exchange, Air New Zealand said that under the terms of the agreement, it will sell the shares for A$0.33 per share to the privately owned Nanshan Group. The shares closed Thursday at A$0.28.
The sale is subject to and will take place after receipt of Nanshan Group regulatory approvals from Chinese authorities, Air New Zealand said.
Earlier this year, Air New Zealand announced it was looking to sell its stake in Virgin Australia. L3N17212N
In late May, China's HNA Aviation announced plans to buy a 13 percent stake in Virgin Australia, with plans to go up to 19.99 percent. New Zealand said that options regarding its remaining stake in Virgin Australia would be considered in due course.
Air New Zealand currently has a 25.9 percent stake in Virgin Australia, although that sake will be diluted to 22.5 percent if the proposed deal with HNA Aviation goes through.