Qatar Airways To Acquire Up To 10 Pct Of LATAM Airlines

July 12, 2016

Bookmark and Share

Qatar Airways has agreed to acquire up to 10 percent of LATAM Airlines, in a USD$613 million deal that requires the consent of existing shareholders at the Chile-based carrier.

The deal follows Qatar Airways' purchase last year of 15 percent of British Airways owner IAG, which like Qatar and LATAM is a member of the oneworld airline alliance.

The move is part of a rapid global expansion by the Doha-based airline, which is due to talk to Italian carrier Meridiana about the proposed purchase of a 49 percent stake.

"As a leading airline in Latin America, and key member of oneworld, this investment provides potential opportunities for Qatar Airways' global network, alongside our successful investment in IAG," Qatar Airways chief executive Akbar Al Baker told a media briefing at the Farnborough Airshow.

The two airlines said they had signed a subscription agreement that provides for Qatar Airways to acquire up to 10 percent of LATAM's total shares following a capital increase.

LATAM must hold an Extraordinary Shareholders Meeting by September 2 to propose a capital increase of USD$613 million through the issue of new shares at $10 per share, the companies said in a statement.

"In addition to strengthening our financial position, it will allow us to explore new opportunities for connectivity with Asia and the Middle East” LATAM chief executive Enrique Cueto said.

(Reuters)