Tuesday, 23 April 2013

Tiger's sale to Virgin gets nod, shares soar

After six months of suspense, Tiger Airways has finally got the green light to sell 60 per cent of its loss-making Tiger Australia to Brisbane-based Virgin Australia for A$35 million (S$44.5 million).
Australia's regulator, the Australian Competition and Consumer Commission (ACCC), yesterday gave the nod, saying "it will not oppose the proposed acquisition by Virgin Australia", and noting that Tiger Australia is unlikely to remain in the local market without the Virgin investment.
The carrier's stock jumped on the news, rallying as much as 12 per cent to 73.5 cents, before ending the day at 68.5 cents, up 4.6 per cent. Some 14 million shares changed hands.

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