iscover
Rex shares have been placed in a trading halt until at least Wednesday.
The halt follows a story published in The Australian over the weekend claiming that Rex had called in a “turnaround team” from big four accounting firm Deloitte and that the airline has been having trouble turning a profit in its domestic jet operations.
This content is available exclusively to Australian Aviation members.
A monthly membership is only $5.99 or save with our annual plans.
- Australian Aviation quarterly print & digital magazines
- Access to In Focus reports every month on our website
- Unlimited access to all Australian Aviation digital content
- Access to the Australian Aviation app
- Australian Aviation quarterly print & digital magazines
- Access to In Focus reports every month on our website
- Access to our Behind the Lens photo galleries and other exclusive content
- Daily news updates via our email bulletin
- Unlimited access to all Australian Aviation digital content
- Access to the Australian Aviation app
- Australian Aviation quarterly print & digital magazines
- Access to In Focus reports every month on our website
- Access to our Behind the Lens photo galleries and other exclusive content
- Daily news updates via our email bulletin
According to the report, Sal Algeri and Richard Hughes, who helped Virgin recover from voluntary administration, are leading the Deloitte team.
“The securities of Regional Express Holdings Limited (‘REX’) will be placed in trading halt at the request of REX, pending it releasing an announcement,” the ASX noted in a statement.
“Unless ASX decides otherwise, the securities will remain in trading halt until the earlier of the commencement of normal trading on Wednesday, 31 July 2024 or when the announcement is released to the market.”
In his request for the trading halt, company secretary Richard Kwan said the move was “pending a material announcement in relation to a news article published on Saturday, 27th July 2024”, which likely refers to The Australian’s story.
A spokesperson told Australian Aviation: “The company is currently in an ASX trading halt pending making a material announcement. Accordingly, in the meantime it isn’t appropriate for us to make any further comments until such announcement is made.”
The airline had previously told The Australian that Rex, as a publicly traded company, “[does] not respond to press or market rumours or speculation”.
The news comes weeks after former executive chairman Lim Kim Hai launched an audacious bid to overthrow the airline’s board following the ascension of John Sharp as chairman and Neville Howell as the new Rex CEO.
In a statement to the ASX, Rex said Lim is seeking to remove four directors, including Sharp, and appoint two new ones in his capacity as a shareholder with a more than 5 per cent stake in the airline group.
More to come.
