Globalia has finally sold the remaining 80% to International Airlines Group (IAG) for 400 million euros

International Airlines Group (IAG) has agreed with Globalia to acquire the remaining 80% of the share capital of Air Europa for 400 million euros. This has been informed by the group to the Spanish National Securities Market Commission (CNMV).

Thus, the airline group that owns Iberia buys 100% of the airline owned by the Hidalgo family for a total of 500 million euros. All this after the conversion of an unsecured loan of 100 million euros for seven years to Globalia into a 20% stake in the capital of Air Europa took effect on August 16. As explained by IAG, the first €200 million will be paid upon receipt of approval from the Competition authorities. Of which EUR 100 million will be in IAG ordinary shares and EUR 100 million in cash.

A further €100 million will be paid in the second and third year after the date of approval of the transaction. The deal is subject to regulatory and other approvals, which could take around 18 months. IAG’s board believes that the acquisition remains “strategically important” to IAG’s future. They believe it positions the Group to benefit from growth opportunities in the Latin American and Caribbean market, as well as to increase connectivity to Asia.