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Airline Partners Australia had reached agreement with Qantas Airways Limited on an improved offer which includes a cash offer of $5.60 per share for 100% of the issued capital of Qantas. Airline Partners Australia has…
Airline Partners Australia had reached agreement with Qantas Airways Limited on an improved offer which includes a cash offer of $5.60 per share for 100% of the issued capital of Qantas. Airline Partners Australia has been informed by Qantas that the non-executive directors have unanimously recommended that shareholders accept the offer in the absence of a superior proposal.
The recommendation is subject to the Qantas board receiving an opinion by an independent expert, Grant Samuel, that the offer is fair and reasonable.
Airline Partners Australia Director and Deputy Chairman, Allco Finance Group, Mr Bob Mansfield AO, said Airline Partners Australia supports Qantas management in undertaking the necessary large capital expenditure that underpins its current growth strategy, maintaining the airline’s international competitiveness, and securing Qantas’ future.
A distinct point of difference is that Airline Partners Australia offers Qantas patient capital, Mr Mansfield added.
We have a longer term perspective than the day to day equity market. Airline Partners Australia will invest for a stronger Qantas over the long term. We will bring our proven experience in the airline and finance industries in support of Geoff Dixon and his management team, he said.
Mr Mansfield confirmed other key benefits of the Offer are:
- A commitment to maintain Qantas’ world leading maintenance and safety record
- Support of management’s plans to invest in excess of $10 billion over the next five years and the acquisition of more than 70 new aircraft, resulting in a 40% increase in capacity
- A commitment to management’s existing plans for Qantas and Jetstar
- An expansion of services, particularly internationally
- The airline remains majority Australian-owned
- More than two thirds of the Airline Partners Australia Board will be Australian citizens Compliance with all ownership laws and regulations
Qantas would retain the current Australian management and their growth strategy, a strategy that does not involve a break-up of the airline, cuts to regional services or the movement of maintenance operations offshore, he said.
Mr Mansfield said the consortium partners are experienced in the aviation sector and acknowledged the significant responsibility of owning the national carrier.
Qantas will remain majority Australian-owned in every sense – by way of voting rights and economic interest, Mr Mansfield said.
The consortium comprises, by way of voting rights, Allco Equity Partners (35%), Allco Finance Group (11%), and Macquarie Bank (less than 15%). Offshore investors include Texas Pacific Group (TPG)(less than 15%), Onex (9%) and other foreign investment funds (less than 15%). Offshore investors in total hold less than 40% with no single international investor holding more than 15%. Qantas is currently approximately 46% foreign owned.
Next Steps and Timetable
Airline Partners Australia’s Bidder’s Statement and Qantas’ Target’s Statement are expected to be mailed to Qantas shareholders in late January or early February. These documents will provide shareholders with detailed information regarding the offer and ample opportunity to make an informed decision.
Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales. She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.
