Singapore state firm sheds stakes in Jetstar Asia and Valuair
Singapore's Temasek Holdings is selling its stake in the holding company that owns two Singapore-based low cost carriers, Jetstar Asia and Valuair, reported Channel News Asia.
The company, Orangestar Holdings, is 45.04 per cent owned by Qantas, with Temasek holding a 33.5 per cent stake. The rest are held by minority shareholders.
Qantas Group and Singapore company Westbrook Investments will acquire the venture from Orangestar.
The acquisition will see Jetstar Asia and Valuair operating under a new ownership structure that will enable them to work more closely with Qantas' fully-owned Australian-based subsidiary Jetstar.
Under the agreement, Qantas will hold a 49 per cent stake in the new holding company for the two airlines called Newstar, while the remaining 51 per cent will be held by Westbrook which is wholly-owned by Dennis Choo Teck Wong.
In a statement, Jetstar Asia says Choo will be appointed as chairman of Newstar Investment Holdings.
Jetstar Asia and Valuair CEO Chong Phit-Lian said the benefits from the change will be extensive and it is not expected to impact the airline's operating flight schedule nor manpower needs.
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