SkyWest, Inc. Makes Proposal to Acquire ExpressJet Holdings, Inc.





ST. GEORGE, Utah, Aug. 4 /PRNewswire-FirstCall/ -- SkyWest, Inc. (Nasdaq: SKYW) ("SkyWest") announced today that it has entered into a definitive merger agreement with ExpressJet Holdings, Inc. (NYSE: XJT)("ExpressJet"), whereby Atlantic Southeast Airlines, Inc., SkyWest's wholly-owned subsidiary ("Atlantic Southeast"), will acquire all of the outstanding shares of common stock of ExpressJet Holdings, Inc. ("ExpressJet") for $6.75 per share in cash, representing a net purchase price of approximately $133 million after giving effect for shares already owned by Atlantic Southeast. ExpressJet's primary operating entity is ExpressJet Airlines, Inc. ("ExpressJet Airlines"). The definitive merger agreement has been unanimously approved by the SkyWest and ExpressJet boards of directors. The transaction is not subject to financing conditions, but is subject to receipt of certain regulatory approvals, approval of ExpressJet stockholders and other customary conditions. The parties currently anticipate that the transaction will close during the fourth quarter of 2010.
Atlantic Southeast has negotiated the principal terms of a new, long-term, capacity purchase agreement with Continental Airlines, Inc. ("Continental"), which is intended to become effective upon consummation of the ExpressJet merger. Upon completion of the merger, ExpressJet will become a wholly-owned subsidiary of Atlantic Southeast, with the intention of combining the operations of ExpressJet Airlines and Atlantic Southeast, subject to receipt of necessary regulatory approvals, and utilizing Atlantic Southeast's existing facilities in Atlanta, Georgia as the operating headquarters of the combined company. The parties anticipate that both airlines will continue to operate under separate airline operating certificates until the regulatory process can be completed for combining the airlines under a single operating certificate. Pending receipt of that single operating certificate, Atlantic Southeast intends to transition certain existing ExpressJet support functions to Atlantic Southeast and SkyWest upon consummation of the transaction. Atlantic Southeast and SkyWest believe that ExpressJet employees and passengers will benefit from the merger by building greater efficiencies of scale and capitalizing on growth opportunities.
"We are extremely pleased to reach this definitive merger agreement with ExpressJet and look forward to the consummation of the transaction," said Bradford R. Rich, SkyWest, Inc.'s Executive Vice President and Chief Financial Officer. "We also look forward to the integration of these two successful airlines and employee work groups and hope to create integration benefits that will solidify the long-term future of each of these airlines in a very competitive industry," he continued.
SkyWest utilized Raymond James & Associates as investment bankers and the services of Parr Brown Gee and Loveless as its legal advisors.
CONFERENCE CALL
In connection with its previously-announced conference call to discuss its second quarter financial and operating results, scheduled for today, August 4, 2010 at 11:00 a.m. Eastern time, SkyWest will also discuss the principal terms of the ExpressJet merger agreement and respond to questions from call participants.
The call-in number for domestic callers is 1-866-524-3160 begin_of_the_skype_highlighting**************1-866-524-3160******end_of_the_skype_highlighting

The call-in number for international callers is 1-412-317-6760

The call-in number for Canada callers is 1-866-605-3852

The conference ID # is 442655

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ExpressJet Airlines - Press Room - Press Release

 

Correction: Atlantic Southeast is buying Expressjet

 

Got a text from a friend in the SOC. Just like with the fleet reduction, the news came first from CNN and not a word from the company.

 

hahaha yeah... just like colgan bought mesaba right?

 

Can anyone at ASA provide some insights on their (soon to be our) company? Management? CBA? Union leadership? Etc

 

You would have to have ASA buy XJT in order to make one list under ALPA. Would the two merged be larger than SKYW now?

 

The best part of all of this is status quo at skywest.

 

XJT's union is still going to take this to arbitration. We want one list across all three companies. Skywest is saying that ASA is a holding company within a holding company but what it all comes down to is what the arbitrator says.

So yeah if your management gets their way the status quo will remain and the potential for whipshaw will still be there. If we get our way ... one big happy family.

I think we will have a Republic type scenario when we are all said and done. Our contract is pretty straightforward on its intent.

 

Trip is right....it is ASA