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Virgin Australia completes Skywest Airlines acquisition

Virgin Australia completes Skywest Airlines acquisition

Virgin Australia Holdings’ (ASX: VAH) goal of fast tracking its growth in regional Australia has received a boost with the completion of its acquisition of Skywest Airlines.

Skywest will become part of the Virgin Australia brand, but would continue to operate under its current Air Operator’s Certificate and its own management team.

Virgin had offered A$0.225 and 0.53 of a Virgin share for every Skywest share, valuing Skywest at about A$0.45 a share, or about $96 million.

Separately, Virgin is also offering to buy Tiger Australia from Tiger Airways Holdings for $35 million.

However, the Australian Competition & Consumer Commission is still in the process of deciding on the proposed acquisition despite Virgin’s belief that it would increase rather than decrease competition in the market.

 

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