The speculation wheel began spinning on Tuesday when The Australian Financial Review published an article in its Street Talk section saying that Qantas was considering a bid for Luxury Escapes “as part of a wider push to diversify the group’s earnings”.
“It is understood Qantas has tapped investment bank Citi for help with due diligence and financing considerations and is working towards putting an offer to Luxury Escapes’ owners,” the article said.
Luxury Escapes is owned by Lux Group, a privately-owned business based in Melbourne which was founded in 2009 by Jeremy Same and Adam Schwab.
According to the AFR, Luxury Escapes’ turnover is expected to be around $500 million in FY20, and its annual earnings have been growing at 50 percent. The Nine-owned publication also noted that the company has a partnership with Qantas’ rewards program.
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