Originally Posted by
Melit
UA didn’t acquire for 60 mil. Skywest loaned Kair Enterprises 26 mil to buy Majority interest.
I can't remember the exact details so I referenced the 8K filing. There were two agreements, an asset sale for $58 million and a stock sale of all outstanding shares for $13 million.
https://www.sec.gov/Archives/edgar/d...-41793_18k.htm
I do see the loan for stock sale and working capital of $26million to KAir
https://www.sec.gov/Archives/edgar/d...9-3151_18k.htm But that's not the whole transaction. The asset purchase was separate.
This sums it up from the Skywest 10-K
Asset Sale
On January 11, 2019, pursuant to the terms and conditions of the Asset Purchase Agreement, dated as of December 17, 2018 (the “Asset Purchase Agreement”), by and among the Company, ExpressJet and United, United acquired certain specified assets and liabilities of ExpressJet, including, among other things, aircraft engines, auxiliary power units, rotable spare parts, ground support equipment and flight training equipment for $60.0 million in cash, subject to certain purchase price adjustments (the “Asset Sale”). Certain assets and liabilities of ExpressJet were expressly excluded from the Asset Sale.
Stock Sale
Additionally, on January 22, 2019, pursuant to the terms and conditions of the Stock Purchase Agreement, dated as of December 17, 2018, by and among the Company and ManaAir, LLC, a company in which United owns a minority interest (the “Buyer”), the Buyer acquired all of the outstanding shares of capital stock of ExpressJet from the Company for $16.0 million in cash, subject to certain purchase price adjustments (the “Stock Sale,” and collectively with the Asset Sale, the “ExpressJet Sale”). To facilitate payment of the purchase price for the Stock Sale, at the closing of the Stock Sale, the Company loaned $26 million to Kair Enterprises, Inc., the majority owner of the Buyer. The Company agreed to lease 16 CRJ200 aircraft to ExpressJet for up to a five year term as part of the transaction.