International Airlines Group (IAG) – to which Iberia, British Airways, Vueling, Aer Lingus and Level belong – has launched a share buyback programme to deliver to Globalia in payment for the purchase of Air Europa for 55 million euros.
As the airline group has informed the Comisión Nacional del Mercado de Valores (CNMV), this purchase is intended to cover the part of the acquisition of 80 % of Air Europa (IAG already controls the remaining 20 %) agreed on 23 February for 400 million euros.
The programme, which starts this Tuesday and must be completed by 14 June, allows the purchase of up to EUR 55 million in shares for a maximum of 27 million shares representing 0,5 % of the current share capital.
It has been led by Deutsche Bank, which will make the share purchases on behalf of IAG, and may only purchase a maximum per trading session equivalent to 25 % of the average daily volume of the shares traded on the stock exchange in the 20 trading sessions immediately preceding the date of purchase.
The purchase of the Globalia airline by the IAG group, subject to regulatory approvals
As the purchase of Globalia’s airline business is subject to regulatory approvals, in particular from the European Union competition authorities, if the transaction is not completed, the shares purchased under this programme may be used to award shares to executives and employees under IAG’s share-based incentive plans.
The IAG group agreed on 23 February to buy its remaining 80 % stake in Air Europa for 400 million. The group had already paid a further 100 million last summer to take a 20 % stake in Globalia’s airline.
Of the 400 million euros, the first 200 million euros will be paid when approval is received from the competition authorities. Of this, 100 million will be in IAG ordinary shares and another 100 million in cash, according to the group.
In the second and third year after the approval of the deal, a further 100 million euros each will be paid.