Bankinter| The airline has filed the application for the purchase of Air Europa with the European Commission. Thus, a two-phase process begins: (i) the first phase will take 35 working days and the EC is likely to request additional information; (ii) in the second phase, the relevant adjustments will be made and it is for an indefinite period of time, but IAG intends to close in 2024. IAG currently holds…
In a historic move in the Spanish airline sector, the IAG group has now become the second largest shareholder in Air Europa, according to today’s Cinco Dias. In an announcement to Spanish Stock Market Regulator (CNMV) this morning, the holding which controls Iberia announced it has taken up the option on a 20% stake in Air Europa, the newspaper said. This option on the stake is part of an agreement…
Intermoney | The chairman of Iberia, Javier Sánchez-Prieto, has confirmed that Globalia already has the green light from SEPI, controlled by the Finance Ministry, and the banking syndicate led by Santander, for the 100 million euros loan convertible into shares with which to buy 20% of Air Europa. The deal was forged in March and is a first step towards the full acquisition of Air Europa. That said, it is…
The operation reinforces the position of Iberia owner IAG on the Europe-LatAm routes, where it will have a 26% share (vs 19% current). One of the main competitors of IAG in these routes disappears, since Air Europa was the sixth operator Europe-LatAm, and the main one in the hub of Madrid.
BOfAML | IAG has agreed to acquire Air Europa, a value carrier, for €1bn as it seeks to increase its market share in the South Atlantic market and turn Madrid into Europe’s next hub airport. The acquisition is in cash and will be funded by external debt increasing IAG’s net debt / EBITDA by 0.3x (from 1.2x at 3Q19). This raises questions on the potential cash return to shareholders.