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Qantas Group outlines proposed 100% takeover of Alliance Aviation
May 6th 2022
Qantas Group has announced its planned acquisition of Alliance Aviation Services, in an all-scrip deal valued at A$614 million (US$437 million). Read More » Under the proposed transaction, Alliance shareholders will receive Qantas shares worth A$4.75 for each Alliance share held, representing a 32% premium to Alliance’s volume weighted average price for the last three months. The deal is dependent on Australia's competition regulator green lighting the offer as well as acceptance of the scheme of arrangement by Alliance shareholders. Qantas Group bought 20% of Alliance in February 2019. "It makes a lot of sense for us to combine with Alliance to improve the services we can offer, a positive for both airlines and the travelling public," Qantas group CEO, Alan Joyce, said. Alliance managing director, Scott McMillan, said there was "strong industrial logic" for Alliance to be part of the Qantas Group. "The transaction combines the complementary fleets and operations of both parties, allowing for more efficient and sustainable services and crew as well as fleet maintenance synergies," McMillan said. Qantas shares ended down 0.4%, at A$5.65, at the close of trade on the Australian Securities Exchange on Thursday while Alliance rose 21.1%, to A$4.25.
