Qatar Airways to acquire up to 10% of LATAM

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By admin July 12, 2016 10:39

Qatar Airways to acquire up to 10% of LATAM

LATAM and Qatar Airways, both members of the oneworld alliance, have entered into a subscription agreement providing for Qatar Airways to acquire up to 10% of LATAM’s total shares, which will be acquired in connection with a capital increase.
As provided for in the subscription agreement, LATAM Airlines Group will hold an Extraordinary Shareholders Meeting no later than 2 September, 2016 to propose a capital increase in the amount of US$613 million through the issuance of new shares at a price of US$10 per share.
“LATAM represents an exciting opportunity to invest and support the development of our long-term relationship. As a leading airline in Latin America, and key member of oneworld, this investment provides potential opportunities for Qatar Airways’ global network, alongside our successful investment in IAG,” said Akbar Al Baker, Group Chief Executive of Qatar Airways.
“We are proud to announce Qatar Airways as a new shareholder of LATAM, reaffirming our bond as existing members of the oneworld alliance. This investment recognises LATAM’s achievements and supports our project for the future. In addition to strengthening our financial position, it will allow us to explore new opportunities for connectivity with Asia and the Middle East, as well as other potential areas of cooperation,” said Mr. Enrique Cueto, CEO of LATAM Airlines Group.
The companies expect the transaction to be completed within the fourth quarter of 2016. Qatar Airways was advised by HSBC, Weil, Gotshall & Manges and Carey, while LATAM was advised by JP Morgan, Claro & Cía y Sullivan & Cromwell.
Qatar is buying into LATAM at what could be the bottom of the market but it remains to be seen what the overall strategy of Qatar Airways is, or will be. India was the focus and LATAM is well removed from that.
admin
By admin July 12, 2016 10:39