The Iberia Group converts the EUR 100 million loan granted to Globalia into a stake, making it the airline’s second largest shareholder
The IAG group, which includes Iberia, British Airways, Vueling and Aer Lingus, made effective its announced intentions several months ago and converted the EUR 100 million loan to Globalia into a 20% stake in Air Europa.
For example, IAG acquires 20% of the airline after the deal was announced on March 17 and now the holding company has exercised its right to exchange this loan for a stake in Air Europa, making it the second largest shareholder. As reported to the National Securities Market Commission (CNMV), the agreement was conditional on Globalia getting the approval of the banks that provided the loan guaranteed by the ICO and SEPI.
At the moment this 20% does not give Iberia control of Air Europa, but the goal is the full acquisition, something that could take about 18 months. “The conversion of the loan at 20% is another step towards that goal and the strengthening of the Madrid ‘hub’,” explain Iberia sources.
The purchase of Air Europa, announced in November 2019 for €1,000 million, has seen several ups and downs due to the severe impact of the pandemic on the accounts of both airlines. The agreement has been updated to the aforementioned convertible loan in 20% of the shares. SEPI sits on Air Europa’s board of directors after providing it with two loans of EUR 475 million, along with bank loans of EUR 140 million and guaranteed by the ICO in its state plan to rescue strategic companies.
As for the ‘hub’ of Barajas, IAG continues to defend its interest to compete with the largest European airports, and the merger of the two airlines is key to this. The company wants to make Spain the gateway to Europe for all tourists from the US and Latin America via Madrid airport.
Shares of the aviation holding company IAG rose 1.40% on the stock exchange on Tuesday at 11.30 am to 1.44 euros per share, after the company announced the loan to Globalia against 20% of Air Europa shares.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
