Tuesday, 10 July 2007

Singapore Airlines wants rid of Virgin Atlantic stake.

Singapore Airlines is considering selling its stake in Virgin Atlantic, which could result in an STGI billion (STG1 = RM6.92) sale.

Singapore Airlines has the biggest stock market value and is said to only be in the early stages of considering options for its 49 per cent stake.

A spokesman declined to comment for SIA while Virgin Atlantic couldn’t be reached for comment.

Corrine Png commented that the sale of the VA stake would be welcomed but may not actually be worth all that is being reported.

"We view this potential exit strategy positively as VA has not contributed significantly to SIA's bottom line nor network connectivity in the past seven years, even though SIA paid a large sum for the stake," she said in a note to investors.

Png later went on to say that SIA would also book a “bumper disposal gain” if the share could be sold for at least STG950 million.

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