Virgin Australia makes $102 million bid for Skywest, buys majority stake in Tiger Australia

The Associated Press

SYDNEY - Virgin Australia, the nation's second largest airline, has announced a 99 million Australian dollar ($102 million) takeover offer for regional carrier Skywest and said it bought a 60 per cent stake in budget domestic rival Tiger Airways Australia for AU$35 million.

The Brisbane-based airline also announced on Tuesday that Singapore Airlines had bought a 10 per cent stake in Virgin Australia for AU$105 million.

Virgin said its cash and scrip offer for Skywest, which operates in regional Australia and Southeast Asia, was worth AU46.88 cents per Skywest share.

Skywest executive chairman Jeff Chatfield said in a statement the offer, which is subject to regulatory and shareholder approvals, represented a substantial premium to the airline's share price.

Virgin chief executive John Borghetti said he was pleased Singapore Airlines' support as an investor.