REX Freight & Charter, a subsidiary of Regional Express (REX), signs a sale and purchase agreement to buy 100% of National Jet Express for $48 million. National Jet Express is a significant provider of fly-in, fly-out (FIFO) services across Western Australia and South Australia.
REX will use an additional $15 million from its convertible note facility, its cash resources, and its joint venture partners to fund the transaction. The transaction will be subject to regulatory approvals, although shareholder approval is not likely to be necessary.
It also offers charter services in Papua New Guinea and routes from Sydney to Adelaide, Brisbane, Melbourne, and Coolangatta.
REX will use its convertible note facility and financial resources to fund the transaction, accounting for 50% of the purchase price.
REX’s joint venture partners will contribute the remaining 50%.
The transaction will be subject to regulatory approvals, although shareholder approval is not likely to be necessary.
“FIFO services are likely to proliferate in Australia, and this acquisition enables the Rex Group to participate in this thriving industry,” said Executive Chairman Lim Kim Hai.
“I believe that NJE’s contemporary aircraft fleet and long-term client relationships, together with Rex’s established track record of safety, reliability, and cost efficiencies, will catapult NJE to be Australia’s preeminent FIFO operator.”
“Through the joint venture, NJE will be able to expand beyond its usual bases of WA and SA, bringing our distinctive brand of FIFO services to Queensland and the Northern Territory.”