Virgin Australia a big step closer to acquiring Skywest
Virgin Australia’s plan to become a larger and broader reaching competitor on domestic routes and in fly-in fly-out mining industry contracts has moved a big step forward with Singaporean approval of a shares plus cash scheme to buy all of WA airline Skywest.
However that approval, from Singapore’s Security Industries Council, is but one of a series of similarly critical applications that remaining pending.
A detailed statement concerning the next steps in the process has been filed with the ASX by Virgin Australia.
However the main requirements now are for the scheme to be approved by the ACCC, the Foreign Investment Review Board, and Skywest shareholders, who will receive 0.225 cents and 0.53 new ordinary shares in Virgin Australia Holdings per Skywest share.
If or when the deal is completed the Skywest brand will disappear into the Virgin Australia brand, as it has already in so far as it operates regional ATR prop jet flights in Virgin liveried aircraft on such routes as Canberra-Sydney and within Queensland.