Press Release Oshkosh/Abu Dhabi, 28th July 2009: Aabar Investments and Virgin Group
Abu Dhabi’s Aabar Investments and Virgin Group
today announced that they have agreed to enter a strategic partnership, which will see Aabar
take an equity stake in the world’s first commercial spaceline – Virgin Galactic. To date,
Virgin Galactic has been wholly owned and funded by Sir Richard Branson’s Virgin Group.
The deal, signed today at the EAA AirVenture air show in Oshkosh, Wisconsin attended by
Sir Richard Branson, Founder of Virgin Group, and Mohamed Badawy Al-Husseiny, CEO of
Aabar. The signing ceremony is taking place alongside Virgin Galactic’s new carrier space
launch vehicle, WhiteKnightTwo (VMS Eve) which is making its public demonstration flying
debut in Oshkosh.
Under the deal, Aabar will invest approximately US$280m and take around a 32% stake in
Virgin Galactic’s holding company, valuing the business at about $900m. The transaction is
subject to obtaining regulatory clearances in the United States and elsewhere. Additionally,
Aabar has committed $100m (plus transaction cost) to fund a small satellite launch capability,
subject to the development of a full business plan. It will also gain exclusive regional rights,
subject to regulatory clearances, to host Virgin Galactic tourism and scientific research space
flights. Finally, Aabar has plans to build spaceport facilities in Abu Dhabi.
Commenting on the acquisition, HE Khadem Al Qubaisi, Chairman of Aabar, said, “I am
pleased to announce this partnership. Virgin Galactic is the leader in the realm of space
tourism, having successfully established a potential global market for its offering in a very
short span of time. Aabar’s stake in Virgin Galactic will open a new avenue of opportunity for
Abu Dhabi in this unique and dynamic business. The significant partnership not only falls in
line with Abu Dhabi’s larger plans to inculcate technology research and science at a
grassroots level but also complements its aim to be the international tourism capital of the
region.”
Virgin Galactic is in the final stages of developing and testing commercial sub-orbital space
vehicles based on the prototype SpaceShipOne, that flew successfully to space and back three
times in 2004. The unique and innovative designs of the vehicles will transform the cost,
safety and environmental impact of access to space for people, science research and
education.
Sir Richard Branson said, “We are delighted to partner with Aabar in a strategic deal that is a
first for Virgin Galactic. The initiative will leverage the solid financial backing of Aabar and
the pioneering technology and strong global relationships of Virgin Galactic. This exciting
deal is indicative of the interesting and high value investments that mark the UAE’s
commercial portfolio.”
The new joint venture also proposes to undertake additional development which would enable
the space system to launch small satellites at unprecedented levels of cost, reliability and
flexibility.
“This transaction carries multiple potential for the creation of an exceptional platform for
space infrastructure such as research labs, space centre for commercial travel and much
more,” said Mohamed Badawy Al-Husseiny.
Virgin Group has invested over $100m in Virgin Galactic since its formation in late 2004.
The development of its new vehicles is being carried out by Scaled Composites, the renowned
Mojave CA based aeronautical firm, owned by Northrop Grumman and led by Burt Rutan.
Scaled Composites was responsible for designing and building SpaceShipOne which won the
$10m X Prize in 2004 as the first privately funded manned space vehicle. The system is
highly innovative: it utilises a carrier aircraft for launch of the spaceship at high altitude, a
controllable and benign hybrid rocket motor and a unique wing feathering design for a
failsafe re-entry. The spaceship makes a runway landing rendering it almost entirely reusable.
The new commercial vehicles are now at an advanced stage of development. VMS Eve, VG’s
new carrier aircraft is well into its test flight programme and is performing flawlessly. It is
the world’s largest all carbon composite aircraft and has a unique high altitude, heavy lift
capability. Sir Richard Branson is due to be onboard VMS Eve as a member of the crew for a
demonstration flight during EAA AirVenture at Oshkosh on Tuesday 28th July.
The new spacecraft, SpaceShipTwo will commence its own test flight programme before the
end of 2009. Both vehicles offer a unique environment for space tourism and a wide range of
science research applications as well as a platform for small satellite launch.
Patrick McCall, the Virgin Group Commercial Director responsible for the transaction said,
“We are building a great partnership for the development of the world’s first private sector
integrated human and payload space launch system. All of us at Virgin Galactic are very
much looking forward to working with Aabar’s Chairman, HE Khadem Al Qubaisi, its CEO
Mohamed Badawy Al-Husseiny and the whole Aabar team as we move forward together at
the cutting edge of the coming industrial revolution in space access. I would also like to take
this opportunity to thank Brandt Mowry, the senior vice-president of corporate development
who managed the transaction on behalf of Virgin Group.”
Virgin Galactic expects the capital infusion to fully fund the company through to its
commencement of commercial operations.
Credit Suisse acted as the exclusive financial advisor and placement agent to Virgin Galactic
regarding the transaction.
About Aabar
Aabar Investments PJSC is an investment company headquartered in Abu Dhabi and is on the
Abu Dhabi Securities Exchange. It directly invests in various sectors including energy,
infrastructure, real estate, automotive and financial services companies. Its largest shareholder
is the International Petroleum Investment Company, which in turn is wholly owned by the
Government of the Emirate of Abu Dhabi.
About Virgin Galactic
Virgin Galactic was launched by Sir Richard Branson’s Virgin Group in 2004 with the
objective of developing commercial space vehicles which would transform the safety, cost
and environmental impact associated with access to space. As well as offering 1000’s of
ordinary people the chance to experience space for themselves, the system will be used for
space and high altitude science research and potentially developed to launch small satellites.
In the future the company expects to move on to the development of orbital vehicles capable
of carrying people, including the possibility of offering very fast trans –continental flights
around the planet.
Virgin Galactic’s vehicles use the design and technology developed by the renowned
aeronautical engineer, Burt Rutan, for SpaceShipOne, which as the world’s first privately
built manned spaceship, flew safely to space and back three times in 2004.
This remarkable and unique project is now in its final stages with the test flight programme of
the commercial vehicles underway. Already, approximately 300 people from around the
world have paid approaching $40m in deposits, representing $60m of ticket sales, to
guarantee an early seat.
Virgin Galactic’s guiding star is safety. In addition to a system that is proven and safer by
design, the vehicles are being put through a comprehensive and exhaustive test flight
programme before the inaugural commercial flight takes place on which Sir Richard Branson
and his family will fly.
Virgin Galactic astronauts will be prepared and trained for an experience of sensory overload,
from the incredible acceleration at launch through to the “out of seat” zero gravity
experienced in the blackness of space whilst looking through large windows at the
breathtaking views of the Blue Planet below.
All of Virgin Galactic’s first astronauts will be pioneers in a new industry which in the future
will allow us to make better use of space to improve life here on Earth.
For further details and assets covering the investor announcement go to www.VirginGalactic.com/PartnershipandBransonAboardVMSEve
