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Agreement between shareholders paves way for Virgin Blue IPO

10/09/2003

Virgin Blue is pleased to confirm that the company’s two major shareholders, Virgin Group and Patrick Corporation, have reached agreement regarding a restructured shareholders agreement, including terms for the company’s planned initial public offering (IPO).


Under the terms of the revised shareholders agreement:


Patrick Corporation will pay to Virgin Group A$240 million, with no further consideration required with respect to its current shareholding. This removes the escalator clause which was part of the previous shareholder agreement and which required that a further consideration was payable dependent upon the performance and valuation of the company.

The shareholders have agreed to the issuance of new equity capital to a value of A$400 million to facilitate the IPO.

“This restructured shareholders agreement fully aligns the interests of our two shareholders and paves the way for us to introduce new equity into our business” said Brett Godfrey, Virgin Blue Chief Executive.


“This capital raising when undertaken will give Virgin Blue a healthier balance sheet, greater flexibility in how it funds its growth and will put us in an even stronger position to respond to any aggressive action by our competitors.”


“Virgin Blue is now well established as a major player in the regional aviation sector and we look forward to offering the Australian travelling public an opportunity to participate in our future success.”


Godfrey concluded: “We’re a strong company with a loyal customer base and we’ll choose the best timing for bringing Virgin Blue to market. This may be in calendar 2003 or 2004. A final decision to proceed will be made by the Board based on market conditions and other considerations.”