Spanish carrier Air Europa, the airline of the Globalia Group, has accepted Turkish Airlines’ offer to acquire a minority stake in its shareholding, specifically more than 26%, equivalent to around €300 million.
According to Europa Press, the transaction is being carried out through a €275 million convertible loan and an additional €25 million purchase of securities, and comes after Air France and Lufthansa withdrew from the deal.
Thus, after months of negotiations, the Globalia airline has secured an investor that will enable it to pay off the €475 million debt it still owes from the loan it obtained from the Strategic Business Support Fund managed by SEPI during the pandemic.
Last January, Air Europa announced the hiring of PJT Partners as an advisor in the search for new investors, with the intention of raising capital to repay this debt. The airline already carried out a capital increase at the end of last year to balance its equity, with a contribution of €65 million from Globalia and €16 million from IAG, which joined in order not to dilute the 20% stake it had held since it tried to buy the company, unsuccessfully due to the demands of the European competition authorities.
According to a recent statement by Turkish Airlines, the process has now moved on to the preparation of the transaction documentation and the start of the official procedures for closing. It is expected to be completed in approximately 6 to 12 months, subject to obtaining the necessary permits and approvals from the relevant regulatory authorities. (€1.00 = $1.16 at time of publication).
