three years and three months After the first purchase announcement, Iberia completes acquisition of Air Europa With the Hidalgo family, as confirmed by both companies. The deal includes the purchase of the remaining 80% of Air Europa for €400 million – after paying €100 million for 20% of the company in August. 500 million euros.
Upon the approval of the competition authorities, an initial payment of 200 million Euros, of which 100 million Euros in cash and 100 million IAG shares, will be made (at the price determined at the time of signing this contract), which will put Globalia in an important position. Shareholder of the IAG group. The other two payments of €100 million each will be made on the first and second anniversary respectively of its approval by the Contest.
The agreement is subject to the approval of the competition authorities as well as the SEPI and ICO. Likewise, it establishes an indemnity of 50 million euros as a departure fee in case the purchase fails to materialise. Until said approval is received, both companies will continue to compete to this day.
The IAG group agreed to buy Air Europa for 1,000 million euros in November 2019, but Pandemic It meant stopping the operation. Coronavirus has forced most planes to stay Overland and it caused damage to accounts of airlines. Air Europa needed a bailout of 475 million euros from the Spanish Government and a worthwhile ICO loan. 140 million euros This is Iberia rethinking the purchase in January last year: it had reduced the cost to 500m euros, payable over five years.
However few months later deal started stagger As traffic began to recover at the end of last year, the operation seemed more effective than ever. Iberia paid 75 million euros to the company’s company hidalgo family (twice the contractual €40 million in case of breach of the agreement) to renegotiate the terms to reach a new agreement during January European Commission.
In March of last year, the group they were a part of Iberia, British Airways and Vueling He made an unsecured loan of 100 million euros to Globalia for seven years. Convert up to 20% to a stock The company operating in the capital of Air Europa in August Luis Gallego executed, so airline shareholder between Hidalgo family. This brings Iberia a little closer to its goal of acquiring Air Europa, which culminated this Thursday.