Vueling, the Spanish low-cost carrier based in Barcelona, is to become component of International Airlines Group after the vast majority of its shareholders accepted IAG’s cash tender offer for the airline, following recommendation by the Vueling board.
IAG’s subsidiary Iberia already owns 45.85 per cent of Vueling’s shares and Iberia’s board agreed to not tender them within the offer.
The Spanish National Securities Market Commission (CNMV) has announced today that 82.48 per cent of the rest shareholders have accepted IAG’s offer of €9.25 per share.
Therefore, the IAG group will own 90.51 per cent of Vueling.
The cost of buying the Vueling shares is €123.5 million.
Vueling would be a standalone company within IAG with its chief executive Alex Cruz reporting into IAG chief executive Willie Walsh.
Willie Walsh, IAG chief executive, said: “Vueling is a good airline and may be a welcome boost to IAG where it is going to enjoy the group’s financial strength.
“We plan to retain Vueling’s current business model and management structure and its strong base in Barcelona.”
The acquisition can be completed on April 26th, 2013.
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