- Regional Express’ (REX) subsidiary, Rex Freight and Charter, signs a sale and purchase agreement to acquire 100 per cent of National Jet Express for $48 million
- National Jet Express is a leading provider of fly-in fly-out (FIFO) services across Western Australia and South Australia
- The purchase will be funded through REX’s drawing down of a further $15 million under its convertible note facility, its own cash resources and its joint venture partners
- The sale will be subject to regulatory approvals with shareholder approval expected to not be required
- Shares in REX are up 2.88 per cent on the market and are trading at $1.25 at 1:48 pm AEST
Regional Express’ (REX) subsidiary, Rex Freight and Charter, has signed a sale and purchase agreement to acquire 100 per cent of National Jet Express for $48 million.
National Jet Express (NJE) is the fly-in fly-out (FIFO) service arm of Cobham Aviation across Western Australia and South Australia.
Additionally, it has routes that run form Sydney to Adelaide, Brisbane, Melbourne and Coolangatta as well as charter services in Papua New Guinea.
The purchase will be funded through REX’s drawing down of a further $15 million under its convertible note facility and its own cash resources for 50 per cent of the price.
The remaining 50 per cent will be provided by REX’s joint venture partners.
The sale will be subject to regulatory approvals with shareholder approval expected to not be required.
“FIFO services are expected to experience strong growth in Australia and this acquisition positions the Rex Group to participate in this booming sector,” Executive Chairman Lim Kim Hai commented.
“I believe that NJE’s modern aircraft fleet and its long-term customer relationships overlayed with Rex’s proven record of safety, reliability and cost efficiencies would propel NJE to be the premier FIFO operator in Australia.
“The joint venture will invest in modern aircraft and technology to enable NJE to expand from its traditional bases of WA and SA and bring our unique brand of FIFO services also to Queensland and the Northern Territory.”
Shares in REX were up 2.88 per cent on the market and were trading at $1.25 at 1:48 pm AEST.