Richard Branson selling £400m shares in space business in desperate bid to save Virgin Atlantic
VIRGIN Group founder Sir Richard Branson is lining up a sale of a $505million (£409million) stake in his space business in a bid to save Virgin Atlantic.
The billionaire businessman said that he intends to use money raised from the sale of part of Virgin Galactic to help prop up the airline, which has been hit by “the unprecedented impact of Covid-19”.
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In recent weeks the airline has been forced to ground 85 per cent of its fleet and axe the majority of its flights due to coronavirus.
It said last week that it would cut 3,000 jobs and close its operations at Gatwick Airport.
Last month Sir Richard said that the future of Virgin Atlantic hung in the balance unless it received a multi-million pound Government bailout.
He was thought to be asking for a £500million loan funded by public cash to help keep the airline alive.
But the request prompted an outcry from people who suggested that Sir Richard should bail out the company himself.
He also said he was prepared to put his private Caribbean island Necker up as collateral to save the business.
As recently as last weekend the airline was reported to have called in restructuring specialist Alvarez & Marsal (A&M) to draw up plans in case it goes bust.
The planned sale of the stake in Virgin Galactic is around 22 per cent of Sir Richard’s total stake in the business.
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The 25million shares will be sold over time via “ordinary brokers’ transactions”, the company said.
Virgin Galactic is itself operating at a loss but is aiming to begin its commercial operations later this year.
It is in the final stages of developing its reusable spacecraft, which can carry six passengers on a 90-minute trip to the edge of space.
There are currently around 600 customers who have bought tickets for a space trip, costing between $200,000 and $250,000 per person.
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