Billionaire Chen’s HNA buys Virgin Australia stake in deal spree

HNA Group, founded by billionaire Chen Feng, is purchasing a stake in Virgin Australia Holdings Ltd., as the conglomerate adds to its more than $91b of assets worldwide. HNA, owner of Hainan Airlines, will spend about A$159m for a 13%stake and plans to increase it to about 20% over time, the Australian carrier said Tuesday. Virgin Australia already counts Air New Zealand, Singapore Airlines and Etihad Airways as its shareholders, besides Richard Branson. Shares in the unprofitable Australian carrier jumped the most in three weeks in Sydney trading Tuesday after it announced HNA was purchasing a stake. Air New Zealand, the biggest investor in Virgin Australia, in March said it may sell its 26% stake. That potential exit stoked speculation that Singapore Air would snap up the stake to stop an less-welcome foreign airline from muscling in. “Singapore are supportive of this arrangement,” Virgin Australia CEO John Borghetti said. “But clearly the way that China is growing, direct services in and out of China are very important.”<br/>