Qantas Airways Ltd (ASX:QAN) made an announcement and now the stock is trading 0.88% lower at 10am Sydney time.

Qantas Airways Ltd has announced it has entered into a Scheme Implementation Deed with Alliance Aviation Services Ltd under which Qantas has agreed to acquire all of the shares in Alliance, other than those it already owns, via a scheme of arrangement. Under the terms of the scheme, Alliance shareholders will receive $4.75 in Qantas shares for each Alliance share held on the record date for the Scheme. The Consideration implies an equity value for Alliance of $764.5m (on a fully diluted basis) and an enterprise value of $919.2m. The national carrier said it would issue new shares valued at approximately $614m in a transaction that is expected to be EPS accretive for Qantas shareholders, before synergies.

Following today’s announcement, Qantas shares are now up 9.13% year-to-date.