Regional Express appears to have its sights set on a foray into the fly-in fly-out sector, entering a trading halt after revealing it was vying for a slice of Cobham Aviation’s operations.
ASX-listed airline Regional Express appears to have its sights set on a foray into the fly-in fly-out sector, entering a trading halt after revealing it was vying for a slice of Cobham Aviation’s operations.
Cobham’s owners Advent International have been preparing the Australian asset for sale for the past six months, dividing it into its fly-in-fly-out arm and its border work for the federal government.
Media speculation has been mounting for several weeks that Rex was eager to acquire Cobham’s FIFO services for the mining and oil and gas sectors, which includes contracts with WA mining companies Minara Resources and IGO.
Yesterday, Rex confirmed it was one of the interested parties involved in the acquisition process, but told the market an agreement was yet to be reached.
Today, the independent airline entered a trading halt ahead of what it described as a “material announcement”.
The acquisition would be a significant coup for Rex, with Cobham currently ranking as one of the country’s largest aviation companies and generating $170 million in revenue annually.
Rex is the largest independent regional and domestic service, with a fleet of 66 aircraft travelling to more than 60 destinations nation-wide.
Rex shares were last trading at $1.215.