Abu Dhabi company has stellar vision for Virgin Galactic stake
By Andrew England in Abu Dhabi
Published: July 29 2009 03:00 | Last updated: July 29 2009 03:00
An Abu Dhabi state-linked investment company is planning to buy a 32 per cent stake in Virgin Galactic, the commercial space venture of entrepreneur Sir Richard Branson, in the latest sign of the oil-rich emirate's rising ambitions.
Aabar Investments will pay $280m (£170m) for the holding in the company, which was launched in 2004 and aims to start flying private passengers to space within two years at a cost of $200,000 per ticket.
The Abu Dhabi group also plans to invest an extra $100m to help pay for research that would give Virgin Galactic the option of launching small satellites from unmanned rockets.
Will Whitehorn, Virgin Galactic's president, said the new investment offered a significant boost.
"It completely funds the project through to commerciality," he said. "It gives us a kick start to get the satellite capability going and I think they will be a great partner. They [Aabar] have got a very strong ambition to invest in transportation and technology, and Abu Dhabi has strong ambitions in developing science within the emirate. This project seemed to fit both criteria for them."
Under the deal, which still requires regulatory clearance, Aabar would gain exclusive regional rights to host tourism and scientific research space flights if it built a spaceport facility in Abu Dhabi.
Test flights have already begun on Virgin Galactic's mothership, while the spaceship will begin test flights in four months, Mr Whitehorn said.
The first commercial passengers could fly within the next 18 to 24 months, he added, although Virgin still requires a licence from the Federal Aviation Administration.
About 300 people have paid almost $40m in deposits in the hope of travelling into space, according to Virgin.
The deal, which has yet to gain regulatory approval, is the latest high-profile transaction by Aabar. Earlier this year, it acquired a 9.1 per cent stake in Daimler , the German carmaker, for €1.95bn.
The company is controlled by the International Petroleum Investment Company , which is wholly owned by the Abu Dhabi government and chaired by Sheikh Mansour bin Zayed al Nahyan, an influential member of the emirate's ruling family and owner of Manchester City football club.
