Qantas Airways (ASX:QAN) and Japan Airlines signed a binding agreement to facilitate the change in Jetstar Japan's shareholder structure through a share buyback transaction, subject to regulatory approvals, according to a Tuesday Australian bourse filing.
Under the transaction, valued at 8.2 billion yen, Qantas will divest its 33.32% minority stake via a share buyback by Jetstar Japan, per the filing. The Development Bank of Japan will enter as a new shareholder in Jetstar Japan, with the transition expected to be complete by June 2027. After the deal, Jetstar Japan will transition to a new brand.
The deal is expected to have an estimated gain of around AU$115 million to items outside of underlying for the Qantas Group, predominantly in fiscal 2027, including one-off benefits related to non-cash expensing of historical foreign currency translation gains from equity reserves and sale proceeds on completion of the transaction.
Qantas plans to redirect capital investment toward Qantas and Jetstar's domestic and international operations in Australia.