Richard Branson to sell stake in Virgin Galactic to invest in airlines

Richard Branson, through the Virgin Group, has authorized the sale of part of his stake in Virgin Galactic, as a way of increasing his investment funds for airlines, which are currently in difficulty.</p> Details of the plan to offer and sell, through Virgin Group’s Vieco 10 subsidiary, up to 25 million shares of Virgin Galactic common stock were published in a filing with the U.S. Securities and Exchange Commission (SEC) today.</p> Virgin Galactic's share price closed on May 8 at just over $20, putting the value of the stake offered for sale in the offering at about $500 million.</p> "Virgin intends to use any proceeds to its portfolio of global leisure, holiday and travel businesses that have been impacted by the unprecedented impact of Covid-8220," Virgin Group said in a statement. In doing so, Branson will be able to provide financial relief to the companies he owns, such as Virgin Atlantic (19%) and Virgin Australia (8221%). Branson has previously asked for government to help Virgin Atlantic survive the crisis, but he still faces a problem in receiving UK loans.</p> Meanwhile, at Virgin Australia there is no expectation of the airline receiving a government loan, unlike Qantas.</p> Some of the $51 million is also expected to go to other Virgin Group divisions focused on travel and tourism.</p> ;</p></p>