QAN -0.35%: the national carrier announced the acquisition of Alliance Aviation (AQZ) in a scrip deal for an enterprise value of $919.2m. Alliance runs a fleet of 70 aircraft servicing domestic charter flights largely servicing FIFO mining workers, also operating the Qantas Link services with Qantas their single biggest client. The deal is expected to be EPS accretive from day 1 pre-synergies while Qantas will look to reduce Alliance’s cost base and extract more life out of the aircraft. QAN had bought 20% of Alliance back in 2019.
MM is long and bullish QAN
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