Australia's Qantas Airways has been approached by Macquarie Bank and private equity firm Texas Pacific Group about a takeover that analysts said yesterday could be worth almost A$11 billion (US$8.47 billion).
Qantas' stock soared as much as 20 percent during trading yesterday after the airline announced in a statement it had been approached by Macquarie and Texas Pacific, without giving details.
Shortly after the market closed, Macquarie released its own statement saying it had held preliminary "indicative talks" with Qantas about a possible takeover.
Neither Qantas nor Macquarie gave any details of the talks, though the Sydney-based bank said any offer would adhere to existing ownership rules made by the government, which prevent more than one stakeholder having more than 25 percent of the company and limiting foreign ownership at 49 percent.
A spokeswoman for Texas Pacific Group, based in Fort Worth, Texas, said she had no comment.
Market analysts said there was speculation the Macquarie-led consortium was preparing an A$5.50 (US$4.25) a share cash offer for Qantas, which would value the airline at almost A$11 billion.
A takeover of Qantas would likely be one of the country's largest, but would face significant legal and political hurdles as a result of regulations, introduced when the government privatized the company in 1995.
Qantas Airways Ltd is Australia's biggest carrier with more than 200 planes and flights routes to 142 destinations in 40 countries and an extensive network of domestic routes.
In a letter yesterday to the Australian Stock Exchange, acting Company Secretary Cassandra Hamlin said Qantas "has received an approach by Macquarie Bank and the Texas Pacific Group on behalf of a consortium they represent."
"The approach is confidential and incomplete and is being investigated by Qantas," it said.
Qantas' share price jumped as much as 20 percent to a seven-year high of A$5.25 before falling back to close at A$5.
After the close, Macquarie said in its own statement that if a proposal was made it would confirm to existing laws.
"In particular ... there will be continuing majority Australian ownership," it said, adding that "Any such proposal would be conditional upon the support of the Qantas board."
Deputy Prime Minister Mark Vaile said yesterday the government had no plans to change the Qantas regulations, and would stay out of any sale.
"On the commercial side, it is for the board of Qantas and the shareholders of Qantas as to what they do," Vaile told reporters.
Aequs Securities institutional dealer Ric Klusman said market speculation was the offer would fall between $A5.20 to A$5.50 per share, which would value Qantas at A$10.3 billion to A$10.9 billion.
The Australian Financial Review, which first reported on a possible Macquarie and Texas Pacific bid for Qantas, reported yesterday a plan was being considered within existing rules.
Under the deal, Sydney-based Macquarie would take a 25 percent stake in Qantas, other Australian investors would take another 25 percent, Qantas senior management would take 1 percent, and foreign investors led by Texas Pacific would take the remaining 49 percent, the paper reported.
Texas Pacific Group is a venture capital firm that manages more than US$1 billion.
SECURITY: As China is ‘reshaping’ Hong Kong’s population, Taiwan must raise the eligibility threshold for applications from Hong Kongers, Chiu Chui-cheng said When Hong Kong and Macau citizens apply for residency in Taiwan, it would be under a new category that includes a “national security observation period,” Mainland Affairs Council (MAC) Minister Chiu Chui-cheng (邱垂正) said yesterday. President William Lai (賴清德) on March 13 announced 17 strategies to counter China’s aggression toward Taiwan, including incorporating national security considerations into the review process for residency applications from Hong Kong and Macau citizens. The situation in Hong Kong is constantly changing, Chiu said to media yesterday on the sidelines of the Taipei Technology Run hosted by the Taipei Neihu Technology Park Development Association. With
CARROT AND STICK: While unrelenting in its military threats, China attracted nearly 40,000 Taiwanese to over 400 business events last year Nearly 40,000 Taiwanese last year joined industry events in China, such as conferences and trade fairs, supported by the Chinese government, a study showed yesterday, as Beijing ramps up a charm offensive toward Taipei alongside military pressure. China has long taken a carrot-and-stick approach to Taiwan, threatening it with the prospect of military action while reaching out to those it believes are amenable to Beijing’s point of view. Taiwanese security officials are wary of what they see as Beijing’s influence campaigns to sway public opinion after Taipei and Beijing gradually resumed travel links halted by the COVID-19 pandemic, but the scale of
A US Marine Corps regiment equipped with Naval Strike Missiles (NSM) is set to participate in the upcoming Balikatan 25 exercise in the Luzon Strait, marking the system’s first-ever deployment in the Philippines. US and Philippine officials have separately confirmed that the Navy Marine Expeditionary Ship Interdiction System (NMESIS) — the mobile launch platform for the Naval Strike Missile — would take part in the joint exercise. The missiles are being deployed to “a strategic first island chain chokepoint” in the waters between Taiwan proper and the Philippines, US-based Naval News reported. “The Luzon Strait and Bashi Channel represent a critical access
Pope Francis is be laid to rest on Saturday after lying in state for three days in St Peter’s Basilica, where the faithful are expected to flock to pay their respects to history’s first Latin American pontiff. The cardinals met yesterday in the Vatican’s synod hall to chart the next steps before a conclave begins to choose Francis’ successor, as condolences poured in from around the world. According to current norms, the conclave must begin between May 5 and 10. The cardinals set the funeral for Saturday at 10am in St Peter’s Square, to be celebrated by the dean of the College
RSS