Bain Capital is one step closer to officially taking over Virgin Australia, with the transfer of the beleaguered airline’s shares to the private equity firm approved by the Federal Court.
The share transfer application was made by Virgin’s administrators, who argued that there would be “no unfair prejudice to the major shareholders or the residual shareholders” upon its completion.
Virgin’s five major shareholders are Etihad Airways, Singapore Airlines, Nanshan Group, HNA Group, and Virgin Group, who collectively own approximately 90 per cent of the company’s equity.
The matter was heard in court yesterday by Justice John Middleton, who made the orders granting leave for the administrators to transfer all the shares in Virgin Australia Holdings from the current shareholders to Bain or their nominee.
The private equity firm’s takeover of Virgin via a deed of company arrangement (DOCA) “remains subject to further conditions precedent, which will be satisfied on or before completion of the transaction”, according to an ASX update issued on behalf of the airline by its administrators.
“The deed administrators expect the completion of the VAH DOCA (and transfer of all the shares to Bain Capital or its nominee to occur on Tuesday 17 November 2020.
“A further update will be provided in due course.”
Virgin’s executive team is set to have a whole new look post-administration, with the airline confirming a number of departures following the resignation of CEO and managing director Paul Scurrah.
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