Second Chinese investor buys stake in Virgin Australia

Second Chinese investor buys stake in Virgin Australia

A second Chinese investor has bought a significant stake in Virgin Australia.

Nanshan joins the NHA Group as an investor in the carrier having bought a 20% stake from Air New Zealand.

News of the deal saw shares in Virgin Australia rise by 5.4% in trading on Friday while shares in Air New Zealand rose 3%.

In a statement Air New Zealand chairman Tony Carter said: “We believe Nanshan Group will be a very strong, positive and complimentary shareholder for Virgin Australia.

"The sale will allow Air New Zealand to focus on its own growth opportunities, while still continuing its long-standing alliance with Virgin Australia on the trans-Tasman network".

Both Nanshan and NHA hope to benefit from the growing number of Chinese visiting Australia with 1.5 million predicted by 2020.

Virgin Australia plans to launch direct flights to China next year,

Nanshan will pay 33 Australian cents a share for its stake, valuing the carrier at about £118 million.

Last month, HNA bought 13% of Virgin Australia but said it plans to raise that stake to about 20% in the future.

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