Virgin buyers circling

THE buyers on the shortlist for embattled airline Virgin Australia have put forward credible bids and have “deep aviation experience”, administrators say.

Four bidders have been shortlisted after several others left the fray or were crossed from the list as administrators from Deloitte analysed indicative bids at the weekend.

Deloitte yesterday declined to name those still on the list, citing “confidentiality commitments”.

But the four are believed to include the nation’s biggest superannuation fund, Australian Super, in partnership with Melbourne-based private equity house BGH Capital, which is also closing in on a deal to buy cinema operator Village Roadshow.

The other three are understood to be US private equity groups Bain Capital, Cyrus Capital Partners and Indigo Partners.

Australian Super is exposed to the aviation sector through stakes in airports including those of Perth, Brisbane and Vienna, while the US private equity houses all have experience investing in aviation.

Deloitte said in a statement the shortlist was made up of “a small number of well-funded parties with strong aviation credentials”.

“We are delighted by the strength of each of those on the shortlist, with parties selected being well funded and possessing deep aviation experience,” lead administrator Vaughan Strawbridge said.

“The parties have worked constructively with the administration process and put forward credible indicative bids.

“Importantly, each has a plan for the business which can secure the future for thousands of Virgin Australia employees.”

Mr Strawbridge said the administrators would be working intensely with the shortlisted bidders over the next four weeks to enable binding offers to be lodged by mid-June.

Another investor touted as a leading contender for Virgin, Canadian asset management group Brookfield, pulled out early yesterday after Deloitte refused its demand that only two bidders be shortlisted for the next stage of the sale process.

A source close to Brookfield yesterday said the company believed that with more than two bidders, there were too many stakeholders who needed to be engaged and negotiated with given final bids were due on June 12.