REG - Intl Con Airline Grp - Air Europa termination agreement

International Consolidated Airlines SAAnnouncement

16/12/2021 12:30

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RNS Number : 9220V  International Cons Airlines Group  16 December 2021

IAG and Globalia agree to terminate Air Europa acquisition agreement and to
work on alternative structures

International Airlines Group ("IAG") and Globalia today announce that they
have terminated the agreement signed on 4 November 2019 and amended on 20
January 2021, under which IAG's subsidiary, Iberia, had agreed to acquire the
entire issued share capital of Air Europa (the "Acquisition").

IAG has also reached an understanding with Globalia to evaluate, before the
end of January 2022, alternative structures that may be of interest to both
companies and offer significant benefits for their shareholders, customers and
employees.

 

In addition to the previously agreed break-fee of €40 million, IAG will pay
Globalia €35 million. Both parties have agreed that these amounts will be
applied to reduce any future purchase price if a new agreement is reached and
to avoid any litigation relating to the Acquisition.

 

Luis Gallego, IAG's chief executive, said:

 

"It is very disappointing that we have had to terminate the current agreement
to acquire Air Europa but the decision makes sense due to the market
conditions, the deep crisis resulting from COVID-19 and taking into account
our desire to maintain a disciplined approach to capital allocation. However,
we have committed to analyse alternative arrangements with Globalia that could
deliver significant benefits. In the same way, we will continue to work with
the Spanish Government to guarantee the connectivity of Spain and the
development of the Madrid hub.

 

"As it has for the last 94 years, Iberia will continue to carry out its
mission to connect Spain with the world, working hard to strengthen and
develop the Madrid hub so that it can compete as an equal with the other
European hubs."

 

 Stephen Gunning

Chief Financial Officer

 

16 December 2021

 

 

 

 

 

LEI: 959800TZHQRUSH1ESL13

This announcement contains inside information and is disclosed in accordance
with the Company's obligations under the Market Abuse Regulation

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