Qantas announces debt reduction and share buy-back
Qantas has announced it will repay $650 million in debt ahead of schedule and invest up to $100 million in an on-market share buy-back, which is set to represent approximately 4 per cent of Qantas shares.
Qantas Chairman Leigh Clifford said the Group was well positioned in terms of its portfolio of businesses, its balance sheet and its strategy to deliver long term shareholder value.
“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 Mr 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 accelerated debt reduction involves repayment of all outstanding 5.125 per cent notes originally due in June 2013. This repayment will be completed five months ahead of schedule in January 2013 and will form part of a program of $1 billion in debt reduction for the Qantas Group in FY13.