30 Oct 2012

Virgin Aust in $A98.7m bid for Skywest

11:57 am on 30 October 2012

Virgin Australia has made a $A98.7 million takeover bid for Skywest, a regional and South East Asian carrier.

AAP reports Virgin also announced on Tuesday that it had bought a 60% stake in Tiger Airways Australia for $A35 million.

Singapore Airlines also announced it had bought a 10% stake in Virgin Australia for $A105 million.

Virgin said its offer for Skywest is worth 46.88 Australian cents per Skywest share.

Skywest executive chairman Jeff Chatfield said an independent expert in Singapore will be appointed to advise the board.

The deal is subject to approvals from the Australian Competition & Consumer Commission, the Australian Foreign Investment Review Board, Singapore's High Court and the Securities Industry Council of Singapore.

Skywest shareholders will also be asked to vote on the offer at an extraordinary general meeting.

AAP reports Skywest shares closed at 28 cents on Monday, while Virgin ended at 46 cents.