FIRB backs frequent flyer buy back

Virgin Australia says the Foreign Investment Review Board has approved its bid to buy back the remaining 35 per cent of the airline’s Velocity frequent flyer program.

The listed carrier, which is majority owned by overseas companies, announced an agreement in September to acquire the stake in Velocity it did not already own from private equity group Affinity Equity Partners.

“As part of the funding strategy for the Velocity acquisition, Virgin Australia also intends to make an offer of Australian dollar denominated notes in the near term to be listed on the ASX, subject to market conditions,” the company said on Friday.

AAP

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