Regional Express shares hold steady amid response to fly-in fly-out takeover speculation

The Regional Express Holdings Ltd (ASX: REX) share price is slightly in the green today after emerging from a trading halt.

The company’s shares are currently swapping hands at $1.215 each, a 0.41% gain. For perspective, the Flight Centre Travel Group (ASX: FLT) share price is down 1.81% today, while Qantas Airways Ltd (ASX: QAN) shares are down 3.08%.

Let’s take a look at what is happening at Regional Express.

Media speculation response

Regional Express shares entered a trading halt briefly today, pending further news The company then emerged from the freeze with a response to recent media speculation.

The airline revealed it is hoping to acquire Cobham Aviation Services’ fly-in, fly-out (FIFO) operations.

In a statement authorised by company secretary Richard Kwan, Regional Express said:

Rex discloses that it is one of the interested parties involved in the acquisition process.

No agreement has been reached for the acquisition of Cobham.

This follows media speculation in the Australian Financial Review that Rex is “one of the last parties standing” for Cobham’s FIFO business.

In June, Regional Express advised weekly services have increased by up to 67% in eleven regional cities.

Regional Express said it will inform the market if the acquisition goes ahead.

Share price snapshot

Regional Express shares slipped 2% in the past year, but they have dropped nearly 12% year to date.

In the past month, the company’s share price has gained 8%. In the last week, Regional Express shares have climbed more than 2%.

For perspective, the S&P/ASX 200 Index (ASX: XJO) has shed nearly 10% in the past year.

The airline has a market capitalisation of about $133.9 million based on today’s share price.

The post Regional Express shares hold steady amid response to fly-in fly-out takeover speculation appeared first on The Motley Fool Australia.

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Motley Fool contributor Monica O’Shea has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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