Virgin Express, SN Brussels set to seal link-up
Tue Apr 12, 2005 02:04 AM ET
BRUSSELS, April 12 (Reuters) - British entrepreneur Richard Branson's Virgin Express (VIRG.BR: Quote, Profile, Research) no-frills airline is set to seal talks on Tuesday with rival SN Brussels Airlines to join forces and form the main carrier at Brussels airport.
Full-fare carrier SN Brussels -- born out of the 2001 collapse of Belgian airline Sabena -- agreed last year with Virgin Express to combine their operations in a joint holding company, 70.1 percent controlled by the private investors in SN Brussels.
Both airlines will continue to operate separately, however, and the operational details still had to be worked out.
The new holding company will hold a news conference at 0930 GMT.
Under the financial terms of the deal already agreed in October, Branson's Virgin group can opt to pull out of loss-making Virgin Express, which posted a 7.3 million euros net loss in 2004. SN Brussels posted a profit of 1.04 million euros.
Under the deal, Virgin Express can sell its 29.9 percent stake in the holding company to the owners of SN for 54 million euros.
Alternatively, SN Airholding -- the private investors behind SN -- can opt to buy out Virgin Express for 75 million euros.
Branson's Virgin Sky Investments Ltd. -- which controls 88.6 percent of Virgin Express Holding Plc, the company controlling the airline -- said earlier it plans to buy out the minority shareholders at 1 euro per share, before delisting the stock.
Cheers,
White Cap
