Hawaiian Holdings shares surge after $1.9 bln buyout deal with Alaska Air

Hawaiian Holdings

04/12/2023 10:21

** Shares of Hawaiian Holdings  HA.O  rise over 180% to
$13.65 premarket, 
    ** Alaska Airlines  ALK.N  to acquire the HA for $1.9 bln,
including $900 mln of net debt
    ** Alaska Airlines shares down 9.0% to $36.16 premarket
    ** Deal valued at $18/ shr in cash, nearly 4x premium as per
Hawaiian's last close price of $4.86
    ** Deal expected to generate high single-digit earnings
gains for Alaska Airlines within the first two years
    ** The tie-up would give ALK control of more than 50% 
market for Hawaii flights, one of the world's most popular
tourist destinations
    ** Alaska Air CEO Ben Minicucci expects regulators to
approve the deal by 2024 end    
    ** TD Cowen expects HA shares to trade at $18/shr
acquisition price and then stay there until the transaction
closes
    ** HA stock down 52.63% in the last 12 months 
   

 (Reporting by Pranav Kashyap in Bengaluru)
 ((Pranav.Kashyap@thomsonreuters.com))