Chinese conglomerate Nanshan Group has snapped up most of Air New Zealand’s shareholding in Virgin Australia.
The transaction for 19.98% is worth about A$232.6 million (US$172.4 million) and will afford Nanshan a seat on the Virgin board, subject to regulatory approval in China.
"We believe Nanshan Group will be a very strong, positive and complimentary shareholder for Virgin Australia," said Air New Zealand chairman, Tony Carter.
"The sale will allow Air New Zealand to focus on its own growth opportunities, while still continuing its long-standing alliance with Virgin Australia on the trans-Tasman network."
Air NZ had been trying to offload its shareholding for some time, although the deal still leaves it with a 6% stake.
Fellow Chinese company HNA Group very recently acquired a 13% stake in Virgin Australia with the option to increase this to 19.99%.
Nanshan is a major backer of Chinese carrier Qingdao Airlines which launched two years ago.
