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BRIEF-Virgin Australia announces strategic alliance with HNA Aviation Group

Published 31/05/2016, 08:50 am
© Reuters.  BRIEF-Virgin Australia announces strategic alliance with HNA Aviation Group
VAH
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May 31 (Reuters) - Virgin Australia Holdings Ltd VAH.AX :

* Strategic alliance with HNA & new equity investment VAH.AX

* Heads of agreement to form a strategic commercial alliance with HNA Aviation Group Co. Ltd

* HNA will also make an equity investment in the Virgin Australia Group

* Investment will be made in form of A$159 million placement of shares

* Following the placement, HNA will have a shareholding of approximately 13 per cent in the Virgin Australia Group

* Says HNA will be invited to nominate a director to the Virgin Australia Group board

* Capital structure review to optimise the Virgin Australia Group's balance sheet and capital structure is ongoing

* HNA intends to increase its shareholding over time up to 19.99 per cent

* Says under the commercial alliance, the companies will look to introduce direct flights between Australia and China

* Source text for Eikon ID:nASX6196k9

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