The board of Qantas has approved the repayment of $650 million in debt six months ahead of schedule and the buy-back of approximately four per cent of the company’s issued shares to the value of up to $100 million. The transactions begin this month.
Qantas chairman Leigh Clifford said the Qantas group is well positioned in terms of its business portfolio and balance sheet.
“The Board believes the current Qantas share price does not reflect fair value of the Group, particularly considering the underlying strength of its domestic, loyalty and Jetstar businesses and the proposed partnership with Emirates,” said Clifford.
“Our continued progress towards the turnaround strategy for Qantas International, plus cash inflows from recent transactions, gives the Board confidence to approve these capital management measures.”
The share buy-back will be funded in part by the sale of StarTrack and “the settlement from Boeing in relation to the Group’s B787 order.”
Qantas says it has added 24 unencumbered aircraft to its balance sheet since July 2010.
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