Delta Air Lines has unveiled plans to acquire up
to an additional 32% of the outstanding capital stock of Grupo
Aeromexico S.A.B. de C.V. through a cash tender offer for
MXP$43.59 per share.
Currently, Delta owns approximately 4.1% of the
outstanding shares of Grupo Aeromexico and holds an option to
acquire an additional 8.1%.
Separately, the Delta pension trust holds
options to acquire approximately 4.6% of Grupo Aeromexico.
Following completion of the tender offer,
Delta and the Delta pension trust collectively would own and/or
have options to acquire up to a total of 49% of the outstanding
shares of Grupo Aeromexico.
"This new investment demonstrates Delta's
confidence in Mexico's future and deepens our relationship with
Aeromexico, cementing Delta's long-term commitment to the
customers we serve to, from and through Latin America," said Delta
President Ed Bastian.
Delta intends to commence the tender offer once
required regulatory approvals in Mexico and the United States have
been obtained. The tender offer will be subject to terms to be
disclosed and customary closing conditions, including the
acquisition by Delta of a minimum number of shares in the tender
offer. The transaction also is subject to approval by the Boards
of Directors of Delta and Grupo Aeromexico.
Delta and Aeromexico launched their first
codeshare in 1994. In 2011, Delta entered into an enhanced
commercial agreement with Aeromexico, and in 2012, Delta invested
US$65 million in shares of Grupo Aeromexico, the parent company
of Aeromexico. In March, Delta and Aeromexico filed an application
with the U.S. Department of Transportation seeking antitrust
immunity for a new joint venture on flights between the United
States and Mexico. The request also was submitted for approval to
the Mexican antitrust authorities, the Comision Federal de
Competencia Economica (Federal Economic Competition Commission).
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