The Capital
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The Capital

Richard Branson Sells Stake in Virgin Galactic to Save Virgin Atlantic

British billionaire Richard Branson intends to sell part of his Virgin Galactic shares in order to receive financial resources to save Virgin Atlantic, according to a statement by the Virgin Group.

Up to 25 million (22%) of Virgin Galactic shares may be put up for sale. As a result, Branson plans to receive about $205 million. The cost of a 22% stake in the company is estimated at $2.32 billion.

“Virgin intends to use any proceeds to support its portfolio of global leisure, holiday and travel businesses that have been affected by the unprecedented impact of Covid-19,” the group said in a statement.

British airline Virgin Atlantic and Australian Virgin Australia, co-owned by Branson, are experiencing problems due to the crisis in the coronavirus, as well as debt obligations.

Virgin Australia in April announced a move to external management. Under the control of the interim administration represented by Deloitte, the airline intends to continue to operate flights. Branson had previously promised that he will save Virgin Atlantic, which also suffers from coronavirus.

Author: Marko Vidrih

Featured image credit: Unsplash

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