VIRGIN Australia will go ahead with a $350 million equity raising after the Takeovers Panel declined an action against the move by the Australian Shareholders Association.
The airline's equity raising plans were announced in mid-November and would see three foreign airlines - Air New Zealand, Etihad Airways and Singapore Airlines - lift their collective stake in the company by almost 8 per cent to near 70 per cent.
The Australian Shareholders Association took action against the move over concerns on a limit placed on smaller retail investors, who will only be able to apply for 40 per cent of their entitlement.
The organisation sought orders from the Takeovers Panel removing the cap for retail investors and blocking Etihad from lifting its stake in Virgin.
In a statement to the ASX today, Virgin welcomed a decision by the Takeovers Panel to decline the request.