Changes are happening - please bear with us while we update our site.

Changes are happening - please bear with us while we update our site. Click here to give us your advice and feedback.

It looks like Virgin (ASX:VAH) is about to have a new owner

It seems that Virgin Australia (ASX:VAH) is about to have a new owner after Cyrus Capital pulled out of the running. 

It seems that Virgin Australia (ASX: VAH) is about to have a new owner after Cyrus Capital pulled out of the running.

What is Virgin Australia?

Virgin Australia is a holding company for Virgin Australia International Airlines, Virgin Australia Domestic Airlines and also Tigerair Australia. Tigerair was acquired by Virgin in 2015.

What has happened with the process?

Virgin is currently going through a bidding process of potentially being rescued. It’s being carried out by Deloitte administrators.

It had gotten to the point of just two bidders remaining, Bain Capital and Cyrus Capital Partners.

But it seems Cyrus has pulled out. Cyrus said in a statement: “On the morning of 22 June 2020, Cyrus presented to the administrators of Virgin Australia Holdings an offer to acquire the airline, its regional business and the frequent flyer program Velocity, in accordance with the administrators’ procedures.

However, since then, the administrators have not returned calls, emails, or meaningfully engaged with Cyrus to progress its offer.”

So Bain is the last bidder standing?

It would seem that Bain is now the winner by default, though Cyrus has indicated it is willing to re-engage with administrators if they will also engage.

However, apparently Virgin’s bondholders have offered to inject about $1 billion of cash into the business.

Summary

It’s an interesting time to be an airline business considering the ongoing troubles with COVID-19. Qantas (ASX: QAN) itself has had to raise capital to ensure its survival through the next few years.

[ls_content_block id=”14945″ para=”paragraphs”]

Disclosure: At the time of writing, Jaz doesn’t own shares in any of the businesses mentioned. 

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

Skip to content