• The operation reinforces the value of the airline and its key role in the Madrid-Barajas hub, especially in connectivity with Latin America and the Caribbean.
• The agreement, pending the approval of the Competition authorities, will promote the development of new routes and will strengthen the national tourism industry.
• The valuation of the operation is 500 million euros for the equity of the company.
Madrid, February 23, 2023.- Globalia, parent company of Air Europa, and International Airlines Group (IAG) have reached an agreement for the sale of the Air Europa airline division.
The agreement involves the acquisition by IAG of the remaining 80 percent of Air Europa for 400 million euros. IAG had previously paid 100 million for 20 percent of Air Europa, so the total of the operation amounts to 500 million euros for the company's equity.
When the approval of the competition authorities is received, the first payment of 200 million euros will be made, 100 million in cash and 100 million in IAG shares (at the price set at the signing of this agreement), which will make Globalia a major shareholder of the IAG group.
The other two payments, of 100 million euros each, will be made on the first and second anniversary, respectively, of the approval by the Competition.
The agreement is subject to the approval of the competition authorities, as well as SEPI and ICO. Likewise, it establishes compensation of 50 million euros as a breakup fee in the event that the acquisition could not materialize. Until the aforementioned approval is obtained, both companies will continue to compete as to date.
This operation reinforces the value of the company and highlights the solidity of the Air Europa project. Likewise, it constitutes far-reaching news for the definitive impulse of the strategic hub of Madrid-Barajas. The project will consolidate the offer for air connectivity between Europe and America, especially with Latin America and the Caribbean region, where Air Europa has a wide network of destinations and a solid presence and recognition, establishing, in turn, a solid link from the American continent to Asia and the Middle East. This will allow Spain to compete on an equal footing with other European connection hubs and will contribute not only to accelerating economic development on both sides of the Atlantic, but also to the recovery of the tourism industry with the implementation of a new model, more innovative, sustainable and profitable.
Jesús Nuño de La Rosa, CEO of Air Europa Holding, has indicated that: "The agreement reached with IAG endorses the success of the plan carried out to consolidate Air Europa as an international reference after the pandemic, demonstrating its viability and good work, before and after the biggest crisis in the aeronautical sector”.
This milestone would not have been possible without the enormous effort made by the entire Air Europa staff, which, over these years, has shown unmatched resilience and work capacity, guaranteeing the highest quality of service for Air Europa customers at all times. the company.