IAG: amends deal to cut Air Europa acquisition price

(CercleFinance.com) - International Airlines Group said that it has amended the terms of its agreement to acquire Air Europa, halving the price of the transaction.


The terms of the new deal call for an equity value of 500 million euros, compared with one billion euros in the original pact, with payment to be deferred until the sixth anniversary of the deal's completion, IAG said.

The move comes as Air Europa cut its fleet to 52 aircraft, from 68 at the end of 2019, when the deal was initially sealed.

Its completion - which is still subject to approval by the European Commission - is expected to take place in the second half of 2021, IAG said.

Assuming completion next year, IAG will take over Air Europa at a time when there could be a significant recovery in air travel, due to the rollout of Covid-19 vaccines, the airline group pointed out.

IAG shares are up 0.6% on the London Stock Exchange on Wednesday morning.

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