Singapore Airlines will acquire a further 9.9% share of Virgin Australia in a $122.6 million move that will take its overall stake in the carrier to 19.9%.
Now, the Singaporean carrier will purchase shares held by the Virgin Group to achieve the "strategic" stake, with 255.5 million shares to be bought at $0.48 per share.
However, the investment remains subject to the approval of Australia's Foreign Investment Review Board.
Singapore Airlines chief executive Goh Choon Phong said the partnership between the two airlines has gone "from strength to strength" with consumers seeing the benefits.
"Increasing our stake in Virgin Australia is another example of Singapore Airlines' deep commitment to the important Australian market," he said. "It also demonstrates our support for the ongoing transformation of Virgin Australia, which has created a more competitive aviation market in Australia."
Although Virgin stressed it does not comment on changes to its share register, it described the acquisition as a "further demonstration of confidence in our strategy."
The two airlines commenced their partnership in 2011 with codeshares, reciprocal frequent flyer program benefits, lounge access, coordinated schedules and joint sales, marketing and distribution activities.
