Virgin Australia to repurchase 35% stake in loyalty program
Virgin Australia has moved to reverse the partial spinoff of its loyalty program, reaching a deal to buy back the stake it had previously sold. Virgin confirmed Monday it had entered negotiations to repurchase the 35% stake in its Velocity frequent flyer program held by investment company Affinity Equity Partners. This deal is expected to be worth A$700m (US$480m) and is scheduled to close by year-end. Completion is subject to certain conditions including finalising documentation, funding and govt approval. When concluded, the purchase will once again give Virgin Australia full ownership of Velocity. The airline sold the 35% stake to Affinity in 2014, resulting in a A$336m gain for Virgin. At the time, the carrier said selling the stake would give access to the capital and resources to allow Velocity to grow more quickly. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2019-09-17/unaligned/virgin-australia-to-repurchase-35-stake-in-loyalty-program
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Virgin Australia to repurchase 35% stake in loyalty program
Virgin Australia has moved to reverse the partial spinoff of its loyalty program, reaching a deal to buy back the stake it had previously sold. Virgin confirmed Monday it had entered negotiations to repurchase the 35% stake in its Velocity frequent flyer program held by investment company Affinity Equity Partners. This deal is expected to be worth A$700m (US$480m) and is scheduled to close by year-end. Completion is subject to certain conditions including finalising documentation, funding and govt approval. When concluded, the purchase will once again give Virgin Australia full ownership of Velocity. The airline sold the 35% stake to Affinity in 2014, resulting in a A$336m gain for Virgin. At the time, the carrier said selling the stake would give access to the capital and resources to allow Velocity to grow more quickly. <br/>
