Indigo Parent Confirms Its Interest In Virgin Australia; Stock Declines 3%

Interglobe Enterprises today said it has signed an agreement for participating in the sale process of Virgin Australia.

In a statement the company said, "As regards Virgin Australia, InterGlobe Enterprises has signed an agreement to participate in the sale process and is bound by the confidentiality requirements of that agreement. We are unable to say anything further at this stage".

Indigo Parent Confirms Its Interest In Virgin Australia; Stock Declines 3%

Rahul Bhatia-led Interglobe Enterprises holds the highest shareholding in Indigo. As of March 2020, Interglobe and associates of Rahul Bhatia hold the highest stake of 38.2% in the company.

Earlier last week, the company refused to accept a report suggesting that the air carrier has shown interest in Virgin Australia."We deny the contents of these reports and would like to clarify that IndiGo has not formulated any indicative proposal, nor does it have any interest in this matter," Chief Executive Officer and Wholetime Director Ronojoy Dutta had said.

Virgin Australia co-founded by Richard Branson is amongst the largest airlines of Australia. The company owing to serious financial trouble over a period of time winded up last month and went for voluntary administration as travel demand came to an abrupt halt due to Covid 19.

Soon after the announcement, shares of Interglobe Aviation fell 3.1% to day's low of Rs. 941 apiece on the BSE.

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