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Air NZ offloads Virgin Australia stake

NZ NewswireNZ Newswire 12/10/2016 Edwin Mitson

© AAP Image/ Dean Lewins Air New Zealand has sold its remaining stake in Virgin Australia for A$65.7 million ($NZ70.4m).

In its monthly update to investors, the company said the sale was an off-market transaction with investors including the Nanshan Group.

In June, Air New Zealand sold its 19.98 per cent stake in the airline to China's Nanshan Group, which owns Qingdao Airlines. It had said in March that it was considering sell its stake.

The Kiwi carrier had spent an estimated A$373m ($NZ400m) building up and maintaining the Virgin stake since 2011, with Wednesday's sale suggesting it has taken a multi-million dollar loss on that investment.

Air NZ shares rose 1.7 per cent, or 3 cents, to $1.80, having slumped by a third so far this year.

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