Qantas today announced it had reached an agreement to sell its 50 per cent stake in StarTrack to Australia Post and acquire 100 per cent of the air freight business Australian
Qantas expects to receive net proceeds of $408 million plus completion adjustments of approximately $5 million from the transaction. It is estimated that the transaction will result in a profit of approximately $30 million.
Under joint venture arrangements between Qantas and Australia Post, each party currently owns 50 per cent of Australian air Express and StarTrack in an arrangement that has existed since 2003.
The transaction is subject to a number of conditions, namely Australian Competition and Consumer
Commission approval for Australia Post’s acquisition of StarTrack and final approval from Australia Post’s shareholder.
Qantas Group CEO Alan Joyce said the 100 per cent acquisition of Australian air Express would
significantly strengthen the Group’s air cargo network.
“Through this acquisition we will be able to offer an integrated air freight product across domestic and international networks,” Mr Joyce said.
“By leveraging the best from both businesses and delivering efficiencies, we will provide a market leading service to our customers.
“This transaction is consistent with the goals of the Qantas Group’s strategy. It enables us to improve a core business area while divesting a non-core asset, StarTrack.
“We have enjoyed a constructive working relationship with Australia Post under the joint venture arrangements.
“We will continue to have a close commercial relationship with Australia Post and StarTrack remaining major customers of Australian air Express and Qantas Freight,” added Mr Joyce.
Subject to the approvals, the transaction is expected to be completed in the fourth quarter of the 2012 calendar year.