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IAG fetches steep discount on Air Europa

Air Europa Boeing 737-800
Air Europa Boeing 737-800, © The Boeing Company

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MADRID - British Airways and Iberia owner International Airlines Group has agreed to buy Spain’s Air Europa for 500 million euros ($606.7 million) under an amended deal, the companies said in a statement. The transaction will be completed in the second half of 2021 with payments deferred for six more years.

Under the amended deal, "the parties have agreed that the amount to be paid by Iberia for Air Europa will be reduced from an equity value of 1 billion euros to 500 million euros the statement added.

Payment will be deferred until the sixth anniversary of the acquisition’s completion, according to the statement.

After originally agreeing to buy Air Europa for 1 billion euros in November 2019, IAG has been pushing to cut the price as the coronavirus pandemic threw the airline industry into crisis.

International travel restrictions have brought the global transport sector to a grinding halt, pushing several airlines to rely on state aid.

The statement said the completion of the deal was expected to take place in the second half of 2021 and the acquisition would be subject to approval by the European Commission.
© Reuters, aero.uk | Image: Air Europa | 20/01/2021 09:17


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