IAG, getting closer to Air Europa: executes 96% of its share repurchase to pay for the purchase

International Consolidated Airlines Group (IAG) has communicated through the CNMV that it has already executed almost a 96% of your buyback program after acquiring 5.6 million shares for 9.48 million euros between May 24 and 25. This operation to purchase own shares, which is carried out on the London Stock Exchange and the Spanish stock markets, is for a maximum amount of 55 million euros, with the aim of acquiring a maximum of 27 million sharesrepresenting 0.5% of IAG’s share capital.

On May 9, the airline ‘holding’ announced a share repurchase program to cover its obligation to deliver titles to Globalia cAs part of the consideration for the planned acquisition of the remaining 80% of the issued share capital of Air Europa, valued at 400 million euros.

Of the total amount, the company explained that the first 200 million euros will be paid when approval is received from the Competition authorities, 100 million euros in IAG ordinary shares and 100 million euros in cash.

IAG already started the program on May 10 and 16 with the purchase of 9.7 million shares for a value of 17.3 million euros. To this is added a new operation between May 17 and 23 with the acquisition of 11.6 million shares for 21 million euros. In this way, the company would have already reached 47.7 million euros.

The execution of the program has been entrusted to Deutsche Bank and will not end later than June 14, unless the company or the bank terminates it in the event that “any circumstance so advises or requires it.”

According to the communication sent to the CNMV, the shares are acquired at a price that will not exceed the higher of the price of the last independent operation and the highest price independently offered on the Stock Exchange at the time the operation is carried out. .

In addition, IAG clarified that “if the purchase of Air Europa is not completed, shares acquired under the program may be used to satisfy executive and employee share awards (including executive directors) made under incentive plans based on in IAG shares”.


The CEO of IAG, Luis Gallego, announced on May 10 that the company has already presented the agreement with Air Europa to the European Commission to obtain its approval and conclude the purchase of the airline.

Thus, he stated that they are waiting for “it to be approved by their competition agency within a period of up to a year and a half.”

In addition, the outgoing president of Iberia, Javier Sánchez-Prieto, stated in March that “the challenge” faced by IAG after the agreement to acquire 100% of Air Europa is to demonstrate to public opinion and the competition authorities that it is a “pro-competitive” operation.

reference: www.estrategiasdeinversion.com

Leave a Reply

Your email address will not be published. Required fields are marked *