Skywest majority owner CaptiveVision Capital Ltd, a subsidiary of Singapore based Advent Air Ltd, will compulsorarily acquire all outstanding Skywest shares after acquiring 90.4 per cent of issued shares in the company.
CVC was offering 22.7 cents and 0.42 depositary interests in Advent for every Skywest share held. All remaining shareholders will receive notice of the acquisition following the close of the offer on August 22.
Late last month Skywest's two independent directors approved the takeover bid after advisers PKF concluded the deal was 'fair and reasonable', and saying the offer represented a premium of 10.2 per cent to the value of the company's shares, based on their poor liquidity.
In an announcement to shareholders, the independent directors stated their belief that a competing takeover offer was unlikely.
The company is also to face a new competitor, with the addition of Queensland-based Alliance Airlines Ltd to the State's charter flights market.
The full text of the announcement is pasted below
The directors of Advent Air Ltd ("Advent") are pleased to advise this 15th of August 2006 that the Offer for Skywest shares
made by CaptiveVision Capital Limited ("CVC"), a wholly owned subsidiary of Advent, is successful. Advent (through CVC)
has now achieved ownership and/or acceptances in respect of over 90% of the issued shares in Skywest Ltd. Unless one or
more of the defeating conditions set out in CVC's offer occurs, the consideration payable to the shareholders of Skywest who
have accepted CVC's bid will be paid on or before the 5th of September 2006.
Advent (though CVC) intends to exercise its rights to compulsorily acquire any remaining balance of shares to increase its
interest in Skywest to 100% following the procedures available to it under the Corporations Act 2001 (Commonwealth). The
required notices will be dispatched to the remaining Skywest shareholders promptly following the close of the offer at 5pm on
the 22nd of August.
At the successful conclusion of the compulsory acquisition process Skywest Ltd will be a wholly owned subsidiary of Advent
Air Ltd.
