altimaklr
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Mesaba Holdings Agrees to Acquire Big Sky
Big Sky Will Become a New Subsidiary
Thursday September 26, 8:16 pm ET
MINNEAPOLIS & ST. PAUL, Minn.--(BUSINESS WIRE)--Sept. 26, 2002--Mesaba Holdings, Inc. (Nasdaq:MAIR - News) and Big Sky Transportation Co. today jointly announced an agreement under which Mesaba Holdings will acquire Big Sky, a Billings, Montana-based regional air carrier, for $2.60 per share, totaling approximately $3.5 million.
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Mesaba Holdings will offer to purchase all outstanding Big Sky common stock in cash, pursuant to a tender offer expected to commence in approximately three weeks, assuming the satisfaction of certain conditions.
Mesaba Holdings plans to operate Big Sky as a wholly owned subsidiary. Big Sky will be separate from Mesaba Holdings' existing subsidiary, Mesaba Aviation, Inc. Mesaba Holdings expects the transaction to be neutral to earnings in FY2003 and slightly accretive in FY2004.
"Mesaba Holdings' goal is to profitably expand our business activities both within the framework of our existing operations at Mesaba Airlines and in new areas of opportunity," said Paul Foley, Mesaba Holdings president and chief executive officer. "Big Sky is a good example of the type of opportunity we are seeking. It is an efficiently run company with an excellent safety record and a cost structure that positions it well in the highly competitive regional airline marketplace."
"This transaction is good for our shareholders, our employees and the communities we serve," said Jon Marchi, chairman of Big Sky's board of directors. "We are delighted to be joining Mesaba Holdings."
"Mesaba Holdings' leadership, financial strength and knowledge of the industry will provide opportunities for our employees, by helping us continue to grow in these challenging times," said Kim Champney, Big Sky president and CEO.
Mesaba Holdings will commence the tender offer after Big Sky has satisfied certain labor conditions. Completion of the acquisition will require the tender of at least two-thirds of all outstanding Big Sky shares, on a fully diluted basis, assuming the exercise of all outstanding stock options.
Mesaba Holdings' primary business is the regional airline subsidiary Mesaba Aviation, Inc., d/b/a Mesaba Airlines. Mesaba Airlines operates as a Northwest Jet Airlink and Airlink partner under service agreements with Northwest Airlines. Currently, the airline serves 106 cities in 24 states and Canada from Northwest's and Mesaba's three major hubs, Detroit, Minneapolis/St. Paul, and Memphis. Mesaba operates an advanced fleet of regional jet and jet-prop aircraft, consisting of the 69 passenger Avro RJ85 and the 30-34 passenger Saab SF340.
More information about Mesaba Airlines is available on the Internet at www.mesaba.com.
Big Sky Will Become a New Subsidiary
Thursday September 26, 8:16 pm ET
MINNEAPOLIS & ST. PAUL, Minn.--(BUSINESS WIRE)--Sept. 26, 2002--Mesaba Holdings, Inc. (Nasdaq:MAIR - News) and Big Sky Transportation Co. today jointly announced an agreement under which Mesaba Holdings will acquire Big Sky, a Billings, Montana-based regional air carrier, for $2.60 per share, totaling approximately $3.5 million.
ADVERTISEMENT
Mesaba Holdings will offer to purchase all outstanding Big Sky common stock in cash, pursuant to a tender offer expected to commence in approximately three weeks, assuming the satisfaction of certain conditions.
Mesaba Holdings plans to operate Big Sky as a wholly owned subsidiary. Big Sky will be separate from Mesaba Holdings' existing subsidiary, Mesaba Aviation, Inc. Mesaba Holdings expects the transaction to be neutral to earnings in FY2003 and slightly accretive in FY2004.
"Mesaba Holdings' goal is to profitably expand our business activities both within the framework of our existing operations at Mesaba Airlines and in new areas of opportunity," said Paul Foley, Mesaba Holdings president and chief executive officer. "Big Sky is a good example of the type of opportunity we are seeking. It is an efficiently run company with an excellent safety record and a cost structure that positions it well in the highly competitive regional airline marketplace."
"This transaction is good for our shareholders, our employees and the communities we serve," said Jon Marchi, chairman of Big Sky's board of directors. "We are delighted to be joining Mesaba Holdings."
"Mesaba Holdings' leadership, financial strength and knowledge of the industry will provide opportunities for our employees, by helping us continue to grow in these challenging times," said Kim Champney, Big Sky president and CEO.
Mesaba Holdings will commence the tender offer after Big Sky has satisfied certain labor conditions. Completion of the acquisition will require the tender of at least two-thirds of all outstanding Big Sky shares, on a fully diluted basis, assuming the exercise of all outstanding stock options.
Mesaba Holdings' primary business is the regional airline subsidiary Mesaba Aviation, Inc., d/b/a Mesaba Airlines. Mesaba Airlines operates as a Northwest Jet Airlink and Airlink partner under service agreements with Northwest Airlines. Currently, the airline serves 106 cities in 24 states and Canada from Northwest's and Mesaba's three major hubs, Detroit, Minneapolis/St. Paul, and Memphis. Mesaba operates an advanced fleet of regional jet and jet-prop aircraft, consisting of the 69 passenger Avro RJ85 and the 30-34 passenger Saab SF340.
More information about Mesaba Airlines is available on the Internet at www.mesaba.com.
