Saturday, May 16, 2020

IndiGo promoter InterGlobe Enterprises confirms it is bidding for Virgin Australia

IndiGo's promoter group InterGlobe Enterprises today said that it has signed an agreement to bid for Virgin Australia.

"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," InterGlobe said in a statement.

InterGlobe Enterprises, led by Rahul Bhatia, is the largest shareholder in IndiGo, the country's largest airline. InterGlobe and Rahul Bhatia's associates hold the largest share of 38.2 percent in IndiGo as of March 2020.

Last week, IndiGo had denied a report which stated that the airline had expressed an 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.

Started in 2000, Virgin Australia is one of Australia's largest airlines. It was co-founded by British businessman Richard Branson.

The airline, having been in a financially distressed situation over several quarters, folded last month as it went into voluntary administration due to a sudden halt in travel demand owing to COVID-19.
16/05/20 Anu Sharma/CNBC TV18
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