Branson to raise $500m by selling stake in Virgin Galactic

Tuesday, May 12, 2020

In order to raise $500 million Richard Branson is reportedly to sell a stake in Virgin Galactic  to prop up his other businesses.

Currently he owns 55 per cent of the venture, and is thus likely to lose his controlling interest and the tycoon has come into criticism in the UK for seeking government support instead of utilising his own funds.

He might put his luxury Necker Island resort up as collateral to secure a UK government loan but no formal offer is believed to have been made.

Virgin Group said it will use the proceeds from the Virgin Galactic sale to support its “leisure, holiday and travel businesses” hit by “the unprecedented impact” of Covid-19.

 Earlier this month the carrier would cut its workforce by a third and will also pull out of London Gatwick.

Virgin Atlantic is a private company half owned by Delta Air Lines, has been focusing on discussions with investors.

Chancellor Rishi Sunak wrote to airlines and airports in March urging them to find other forms of funding, and that the government would only step in as “a last resort” during the coronavirus crisis.

 After a sharp fall in traffic Virgin Australia slipped into voluntary administration  and due to the situation there is a delay in the launch of a new cruise venture, Virgin Voyages.

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