Australia's two largest independent regionals are now controlled by separate Singaporean interests. Singapore-based CaptiveVision Capital (CVC) has completed a hostile takeover of Skywest Airlines. It joins Regional Express, better known as Rex Airlines, as a Singapore-controlled Australian regional carrier.
Perth-based Skywest has been the subject of a hostile takeover bid since last April. CVC was already a significant minority shareholder when it launched its offensive. The airline's board vigorously opposed it, and recently listed Skywest's shares on the Australian stock exchange in hopes that trading would lift the share price above what CVC was offering. The strategy failed. With shares trading slightly below CVC's offer price, a number of shareholders decided on the last day to accept its offer.
The new owners have not disclosed what changes they intend. CVC head Jeff Chatfield says that his group will try to minimise disruption. Skywest has struggled with the cost of acquiring a second Fokker 100 and new competition from low-cost Virgin Blue.
Moving in the opposite direction, Rex's owners are planning an initial public offering after June. Chairman Lim Kim Hai says Rex will offer "a large minority stake". The offering is contingent on Rex earning a net profit of A$5 million ($4 million) for its financial year ending 30 June.
Source: Airline Business
