Delta successfully increases stake in Grupo Aeroméxico by 32%

Delta Airlines has announced it has been successful with its cash tender offer to acquire additional 32 percent of outstanding capital stock via the Mexican Stock exchange in Grupo Aeroméxico S.A.B. de C.V.. The price paid was MXN$53.00 per share.
The American carrier acquired 228 million shares, which equates to 32 percent of outstanding shares of Grupo Aeroméxico and 39.8 percent of the shares tendered in the tender offer for a total price of MXN$12.1 billion. The result of the successful tender offer means Delta now owns 36.2 percent of outstanding shares in Grupo Aeroméxico, while holding options to acquire an additional 12.8 percent, which would give the company a 49% total stake in the Mexican company.
Ed Bastian, Delta Chief Executive Officer stated that: “We are pleased to successfully complete the tender offer. This is yet another milestone that strengthens the Delta – Aeroméxico relationship as we move toward implementing our joint cooperation agreement in the second quarter.”
The American and Mexican carriers began their first codeshare in 1994, while in 2011, Delta entered into an enhanced commercial agreement with Aeroméxico, and in 2012 Delta invested US$65 million in shares of Grupo Aeroméxico. In March 2015, Delta and Aeroméxico entered into a joint cooperation agreement relating to flights between the United States and Mexico.
All conditions to completing the tender offer, including receipt of required regulatory approvals in Mexico, have been satisfied.
Grupo Aeroméxico is the parent company of Aeroméxico, the Mexican flag-carrying airline based in Mexico City, which operates scheduled services to more than 80 destinations in Mexico; North, South, and Central America; the Caribbean, Europe, and Asia.
(US$1.00 = MXN$19.57 at time of publication.)