Post by andypspotter on Jul 12, 2016 22:28:53 GMT
Qatar Airways is to acquire a stake of up to 10% in its Oneworld partner LATAM Airlines Group through a capital increase.
Under the deal, announced today at the Farnborough air show, the Latin American airline group will hold an extraordinary shareholders' meeting by 2 September to propose a $613 million capital increase through the issuance of new shares at a price of $10 per share.
"LATAM represents an excellent opportunity to invest and support the development of our long-term relationship," says Qatar Airways chief executive Akbar Al Baker.
Enrique Cueto, LATAM's chief executive, notes that in addition to strengthening its financial position, the capital increase "will allow us to explore new opportunities for connectivity with Asia and the Middle East, as well as other potential areas of co-operation".
The companies expect to complete the transaction in the fourth quarter.
Qatar already has a stake in another Oneworld partner, IAG, which it recently lifted to 15%.
Under the deal, announced today at the Farnborough air show, the Latin American airline group will hold an extraordinary shareholders' meeting by 2 September to propose a $613 million capital increase through the issuance of new shares at a price of $10 per share.
"LATAM represents an excellent opportunity to invest and support the development of our long-term relationship," says Qatar Airways chief executive Akbar Al Baker.
Enrique Cueto, LATAM's chief executive, notes that in addition to strengthening its financial position, the capital increase "will allow us to explore new opportunities for connectivity with Asia and the Middle East, as well as other potential areas of co-operation".
The companies expect to complete the transaction in the fourth quarter.
Qatar already has a stake in another Oneworld partner, IAG, which it recently lifted to 15%.