Sept 16 (Reuters) - Virgin Australia Holdings Ltd on Monday said it entered into a term sheet to buy back the 35% of its Velocity frequent flyer programme that it does not already own for A$700 million ($480.83 million) from private-equity group Affinity Equity Partners.
Sources had said the deal is likely to value the business at around A$2 billion.
Completion of the deal is subject to the funding and regulatory approval, Australia’s second-largest airline said in a statement.
$1 = 1.4558 Australian dollars Reporting by Niyati Shetty in Bengaluru; Editing by Sandra Maler
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