Virgin Australia acquired by private equity firm Bain Capital

Virgin airlines covid-19

The directors of Virgin Australia announced Friday that they have accepted the takeover offer from the American private equity firm Bain Capital, based in Boston in the United States.

The transaction – which still needs regulatory approval – will be completed by August and « will result in the sale and recapitalization of Virgin Australia Holdings and its subsidiaries, » said firm Deloitte, which represents the struggling Australian airline. The terms of the buyout and the amount were not disclosed, but Bain Capital has committed to « maintaining thousands of jobs, » according to Deloitte.

Read Also: COVID-19: Virgin Australia bankruptcy

« Bain Capital has presented a strong and competitive offer for the company that will secure the future of the second-largest Australian company and thousands of employees and their families, and will ensure that Australia continues to enjoy the benefits of the competitive airline industry, ”said director Vaughan Strawbridge.

The second-largest Australian carrier behind Qantas, Virgin Australia has not withstood the impact of the COVID-19 pandemic: it announced this April 21, 2020, to the stock market authorities its cessation of payments, with the appointment of court administrators at stake. Indebted to the tune of some 5 billion Australian dollars (3.06 billion euros at the current exchange rate), it had asked the authorities for a loan of about 1.4 billion Australian dollars (860 million euros), that the Canberra government had refused. From now on, if the transaction comes to an end, it will be floated by Bain Capital.

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