Sir Richard Branson selling Virgin Galactic shares to help boost airline
Sir Richard Branson has agreed to sell shares worth around £405 million in his Virgin Galactic space business to raise funds for his struggling airline and leisure businesses.
The businessman, who has previously suggested he would be willing to remortgage his private Caribbean island home on Necker Island to raise funds, said the cash would be reinvested into firms including Virgin Atlantic.
Announcing the plans via the New York Stock Exchange, Virgin Group said it would sell 25 million shares via Credit Suisse, with the process expected to cost the business £135,400.
The shares, sold via Sir Richard’s British Virgin Islandsbased shell company Vieco 10, account for around a fifth of the billionaire’s stake in the space tourism business.
It comes a week after Virgin Atlantic announced plans to cut more than 3,000 jobs and end its operation at Gatwick. The airline said it will reduce its workforce by 3,150 people – equivalent to more than a 30 per cent cut.
Virgin Atlantic’s flights from Gatwick – grounded due to the collapse in demand caused by the coronavirus pandemic – will not restart. Some routes will be switched to Heathrow.
Sir Richard has previously warned the carrier will collapse unless it receives government support. British Airways announced earlier this month it was planning to cut 12,000 jobs, and considering closing its Gatwick base.