IAG agrees to provide Air Europa owner with €100m loan for potential 20% stake in airline – Update


By Sabela Ojea

International Consolidated Airlines Group SA announced that it has signed an agreement with the owner of the Air Europa conglomerate, Globalia Corporacion Empresarial SA, to provide an unsecured loan of 100 million euros (110.3 million dollars) over seven years in exchange for a potential 20% stake in the Spanish airline.

The airline group – which is home to British Airways, Iberia and Vueling among others – said on Thursday the deal gave it time to assess the interest of both parties after the termination of the contract to acquire Air Europa in December 2021 .

Regarding the potential stake in Air Europa, IAG said the deal comes with the option to convert the loan into a stake of up to 20% in the carrier, as well as an exclusivity period regarding offers of the airline company.

The agreement “provides for a one-year period of exclusivity while discussions take place and this comes with a right to match any third-party offers for the airline within the next three years, as well as an exit right alongside Globalia, should it sell Air Europa at any time in the future,” the FTSE 100-listed company said.

Write to Sabela Ojea at [email protected]; @sabelaojeaguix


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