Rex to pay $48 million for acquisition of major FIFO operation.
Regional Express has just announced the finalisation of a Sale and Purchase Agreement to acquire 100% of National Jet Express Pty Ltd, the regional services arm of Cobham Aviation Services Australia.
The purchase price is about $48 million, which will be 50% funded by drawing down an additional $15 million from Rex’s convertible note facility with financier PAG as well as the carrier’s own cash resources.
The other half of the funding will be provided by Regional Express’ joint venture partners, one of whom is the airline’s Executive Chairman Lim Kim Hai, who will be paying for their share with private funds.
“FIFO services are expected to experience strong growth in Australia, and this acquisition positions the Rex Group to participate in this booming sector,” Lim said.
The National Jet Express fleet comprises eight Bombardier Q400 turboprops and six Embraer E190 jets.
More details in today’s issue of Travel Daily.