{"id":20307,"date":"2022-05-05T17:46:17","date_gmt":"2022-05-05T12:16:17","guid":{"rendered":"https:\/\/aviationa2z.com\/?p=20307"},"modified":"2022-05-05T19:15:28","modified_gmt":"2022-05-05T13:45:28","slug":"qantas-signs-deal-to-purchase-the-remaining-stake-in-alliance-aviation","status":"publish","type":"post","link":"https:\/\/aviationa2z.com\/index.php\/2022\/05\/05\/qantas-signs-deal-to-purchase-the-remaining-stake-in-alliance-aviation\/","title":{"rendered":"Qantas signs deal to purchase the remaining stake in Alliance Aviation"},"content":{"rendered":"\n

Australia’s Qantas Airways (QAN.AX) told on Thursday it would buy the remaining 80% stake in Alliance Aviation Services (AQZ.AX) for A$610.8 million ($443.14 million) in an all-stock agreement to grow its footprint in the charter business.<\/strong><\/p>\n\n\n\n

Australian mining industry <\/h2>\n\n\n\n

The agreement will permit Qantas to incorporate Alliance’s charter fleet and “efficiently” serve customers in the Australian mining industry,<\/a> as the complete reopening of international borders is anticipated to see an influx of workers and increased activity in the sector.<\/em><\/p>\n\n\n\n

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Qantas |Aviationa2z.com<\/strong><\/figcaption><\/figure>\n\n\n\n

The resources sector continues to grow and any new tender for airline services will be very competitive. It makes a lot of sense for us to combine with Alliance to improve the services we can offer,” Qantas Chief Executive Officer Alan Joyce said.<\/p>\n\n\n\n

Alliance investors will get A$4.75 apiece, a more than 35% premium to the stock’s last close and values the whole aviation services provider at A$764.5 million. In comparison, Qantas paid almost half of its current offer to purchase the initial 19.9% stake in Alliance in earlier 2019.<\/p>\n\n\n\n

The transaction represents a compelling opportunity for our shareholders to exit the Alliance business following a time of significant industry upheaval, and to realize a strong return on Alliance’s fleet assets,” Alliance Chairman Steve Padgett told.<\/p>\n\n\n\n

Alliance shares soared 26.5% to A$4.44, marking their largest intraday jump since May 2020, while Qantas edged lower.<\/p><\/blockquote><\/figure>\n\n\n\n