Skywest Airlines (ASX: SXR, LSE: SKYW) has been in operation for nearly five decades, but major change is afoot following Virgin Australia Holdings (ASX: VAH) announcing an in-principle, conditional agreeemnt to acquire 100% of Skywest.
Considertaion for the deal is cash and scrip, with Virgin offering A$0.45 per share, which is expected to comprise A$0.225 in cash and 0.53 new VAH shares for each Skywest share.
The offer values Skywest at around A$95 million, and is around a 61% premium.
Skywest operates flights across regional Western Australia as well as to Darwin, Melbourne and internationally to Denpasar, Bali - with a strong presence in the corporate charter, ‘Fly in Fly Out’ mining market and Regular Passenger Transport.
The the airline carries around 800,000 passengers annually, servicing business travellers, tourists and regional communities.
If approved - the deal with fast-track Virgin's expansion into the regional and ‘Fly in Fly Out’ market.
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