Richard Branson to sell $US500m in shares as he looks to save Virgin Atlantic

We’re sorry, this feature is currently unavailable. We’re working to restore it. Please try again later.

Advertisement

This was published 3 years ago

Richard Branson to sell $US500m in shares as he looks to save Virgin Atlantic

By Ben Stupples and Yueqi Yang

Richard Branson is selling more than a quarter of his stake in Virgin Galactic Holdings, a move that would provide about $US500 million ($771 million) to support his broader Virgin business empire.

Shares of Virgin Galactic, which have gained 69 per cent this year, were down 2.6 per cent at $US19.64 in late afternoon trade on Wall Street.

Richard Branson's net worth, estimated at $US5.1 billion by the Bloomberg Billionaires Index, has fallen more than $US2 billion since mid-February.

Richard Branson's net worth, estimated at $US5.1 billion by the Bloomberg Billionaires Index, has fallen more than $US2 billion since mid-February.Credit: Bloomberg

Branson's Virgin Group may sell as many as 25 million shares in the space-travel firm, with the proceeds going to his leisure and travel businesses, according to a statement on Monday.

The 69-year-old Briton is trying to save Virgin Atlantic, which has struggled to qualify for a UK-supported loan program aimed at helping businesses survive the worldwide coronavirus pandemic. He's seeking outside investors for the airline, while also weighing an infusion of his own funds.

Credit Suisse has been appointed to manage the potential stock sale.

The pandemic has rocked many of industries in which Branson has invested. His decades of media-friendly exploits, from attempts at world records to glitzy airline route launches to a bid to establish the world's first space-tourism company, have become a millstone as states balk at coming to the aid of one of the world's best-known entrepreneurs.

Loading

Branson said in a public letter last month that he doesn't have much cash on hand to put into his struggling investments, citing a record of extracting little "significant" profit from Virgin and instead constantly ploughing proceeds into new businesses. Those include a run of comparative duds, such as Virgin Cola, as well as successes such as his space company, which started trading publicly last year after merging with US investment firm Social Capital Hedosophia.

The Virgin brand Branson founded as a mail-order retailer in 1970 is now linked to more than 60 businesses, including British bank Virgin Money. His net worth, estimated at $US5.1 billion by the Bloomberg Billionaires Index, has fallen more than $US2 billion since mid-February.

Advertisement

"This is the most significant crisis the world has experienced in my lifetime," Branson said in a March blog post.

"Because many of our businesses are in industries like travel, leisure and wellness, they are in a massive battle to survive and save jobs."

Bloomberg

Most Viewed in Business

Loading