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 forged in March via which IAG granted Air Europa’s parent company Globalia a 100 million euros loan convertible into shares with which to buy 20% of the Spanish airline. The deal valued 100 percent of Air Europa at 500 million euros, without debt.
While the 20% holding is considered as a financial stake, IAG’s decision to take up the shares is seen as a significant step in its ultimate goal of fully acquiring Air Europa. However this operation will depend on approval from the relevant EU authorities.
Meanwhile, both companies will continue to compete in a hugely complicated market, which is dealing with the tail-end of the pandemic, inflation and fuel costs, Cinco Dias notes.