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Participating in sale of Virgin Australia: IndiGo’s largest shareholder InterGlobe Enterprises

A Virgin Australia plane is seen at Kingsford Smith International Airport in Sydney. File

A Virgin Australia plane is seen at Kingsford Smith International Airport in Sydney. File   | Photo Credit: Reuters

Virgin Australia collapsed on April 21, putting 16,000 jobs under threats

IndiGo airline’s largest shareholder company InterGlobe Enterprises on Friday said it has signed an agreement to participate in the sale of Virgin Australia, three weeks after the second-largest Australian carrier announced its collapse amid the coronavirus pandemic.

Billionaire Rahul Bhatia-owned InterGlobe owns 37.87% in IndiGo, while Rakesh Gangwal, his family members and his family trust own 36.64% in India’s largest airline.

Virgin Australia collapsed on April 21, putting 16,000 jobs under threat.

The cash-strapped carrier announced it had entered “voluntary administration” to recapitalise the business after being battered by the pandemic, which has crippled the global airline industry.

The move came after the full-service carrier, which suspended almost all flights in March following wide-spread travel bans, failed to secure A$1.4 billion ($887.60 million) loan from the Australian government.

“As regards Virgin Australia, InterGlobe Enterprises has signed an agreement to participate in the sale process and is bound by the confidentiality requirements of that agreement. We are unable to say anything further at this stage,” InterGlobe Enterprises said.

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Printable version | Jun 3, 2020 7:15:10 PM | https://www.thehindu.com/news/national/participating-in-sale-of-virgin-australia-indigos-largest-shareholder-interglobe-enterprises/article31589660.ece

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