Airlines & Private Equity 13 Dec 2006 07:02 pm

Qantas Goes Private

by Sean Hackbarth

Qantas logo

We know where all the private equity for airlines went: down under:

QANTAS Airways has accepted an $11 billion takeover offer from an international consortium including Macquarie Bank of $5.60 a share in the biggest private equity deal in Australian history.

Qantas’s non-executive directors have unanimously recommended that shareholders accept the offer from the consortium known as Airline Partners Australia (APA) after it was bumped up from $5.50.

Qantas chairman Margaret Jackson said the offer from the Airline Partners Australia consortium was 33 per cent higher than Qantas’s closing share price of $4.20 on November 6, when the prospect of a bid was first raised.

“The directors believe this offer allows Qantas shareholders to realise significant value for their shares that has not been fully recognised in the public market,” Ms Jackson said.

“If this acquisition is successful, Qantas will remain a majority Australian-owned, Australia-based airline,” Ms Jackson said.

The investor group sweetened the deal after it was rejected the day before.

On the heels of buying part of Sabre Holdings Texas Pacific Group grabbed a chunk of Qantas. Rumor has it a piece of the moon is next on their list.

For Qantas stockholders this is icing on the cake (or another shrimp on the barbie?). The stock has been on a tear since late summer.

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2 Responses to “Qantas Goes Private”

  1. on 19 Dec 2006 at 11:05 pm 1.TAM Money and Finance » Texas Pacific Gets into Casino Business said …

    [...] Texas Pacific still had a few billion burning a hole in its pocket. The private equity firm strikes again joining Apollo Management to buy Harrah’s for a deal, including debt, worth $27.8 billion. You can do big deals like buying part of Sabre, Qantas, and now Harrah’s if you raised $15 billion in the world’s second-largest buyout fund. [...]

  2. on 07 Feb 2007 at 8:49 pm 2.TAM Money and Finance » Private Equity Firms Getting Attention They Don’t Want said …

    [...] Private equity firms would just like to raise billions, buy companies, pay off the debt, and sell the companies without the distractions from newspapers, interest groups, and–yes–weblogs. Unfortunately for them when they amass huge sums of money and buy anything from Australia’s Qantas to the Minneapolis Star Tribune to Burger King you’re going to get noticed. Even more attention will be drawn to the industry if Bain Capital founder Mitt Romney stakes a firm claim to the 2008 GOP Presidential nomination. [...]

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