Virgin Australia has narrowed the shortlist of bidders for the troubled airline down to two: Boston-based private investment firm Bain Capital, and global investor Cyrus Capital Partners, which has links to British billionaire and Virgin founder Richard Branson.
Key points:
- After a competitive process, two bidders have emerged for Virgin Australia and final bids are due on June 12
- The unions want worker entitlements protected and the Government to ensure Virgin is maintained as a full-service airline
- The sale of Australia’s second major airline should be wrapped up by the end of June
Virgin administrator Deloitte, led by Vaughan Strawbridge, has spent the past two days grilling the shortlisted parties about their offers.
With the coronavirus crisis bringing the travel industry to a halt, Virgin Australia went into administration on April 21, owing about $7 billion to about 12,000 creditors.
There had been about 20 interested parties, including a last-ditch bid by the Queensland Government.
The shortlist was then narrowed down to four bidders, which, aside from Bain Capital and Cyrus Capital, had included private equity firm BGH Capital and US aviation investor Indigo Partners.
“Five non-binding indicative proposals were received on Friday, and they have now been further short-listed to two preferred bidders,” Mr Strawbridge said.
Bain Capital is one of the world’s leading private investment firms with about $US105 billion ($155 billion) in assets under management.
It brings in local aviation experience with the assistance of former Jetstar chief executive Jayne Hrdlicka, who has also previously worked at Bain’s consulting arm.
If Bain wins the bid, there are suggestions she could take over as Virgin’s new CEO, replacing Paul Scurrah.
New York-based investment advisory firm Cyrus Capital Partners manages about $US4 billion ($6 billion) in investment