International Airlines Group (IAG) and Globalia have amended the original agreement announced on November 4, 2019 (the Original Agreement) under which IAG’s subsidiary Iberia has agreed to acquire the entire issued share capital of Air Europa (the Amendment Agreement).
Under the terms of the Amendment Agreement, 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 to €500 million (US$1.21 billion to US$605 million) with payment deferred until the sixth anniversary of the acquisition’s completion.
The revised terms in the Amendment Agreement are conditional on the satisfactory negotiation between Iberia and Sociedad Estatal de Participaciones Industriales (SEPI) regarding the non-financial terms associated with the financial support provided by SEPI to Air Europa during 2020. Iberia intends to begin discussions with SEPI shortly concerning these conditions.
Assuming satisfaction of all conditions of the Amendment Agreement and the Acquisition, completion is expected to take place in the second half of 2021. The Acquisition is still subject to approval by the European Commission.
