Qatar Airways acquires stake in LATAM
Doha-based Qatar Airways has signed an agreement to acquire up to 10 per cent of LATAM Airlines Group’s total shares via an increase in capital.
As allowed in the subscription agreement, LATAM Airlines Group will hold an Extraordinary Shareholders Meeting no later than 2 September 2016 to propose a capital increase to the amount of US$613 million through the issuance of new shares at a price of US$10 per share.
Akbar Al Baker, group chief executive of Qatar Airways and Enrique Cueto, CEO of LATAM Airlines Group, made the announcement at the recent Farnborough International Air Show.
Al Baker said: “LATAM represents an exciting opportunity to invest and support the development of our long-term relationship. As a leading airline in Latin America, and key member of oneworld, this investment provides potential opportunities for Qatar Airways’ global network, alongside our successful investment in IAG.”
Cueto added: “We are proud to announce Qatar Airways as a new shareholder of LATAM, reaffirming our bond as existing members of the oneworld alliance. This investment recognises LATAM’s achievements and supports our project for the future. In addition to strengthening our financial position, it will allow us to explore new opportunities for connectivity with Asia and the Middle East, as well as other potential areas of cooperation.”
The companies expect the transaction to be completed within the fourth quarter of 2016.