British Airways-Iberia improve their takeover offer on Vueling’s shares with an increase from €7 to €9.25
IAG, the airline formed after the merger of British Airways and Iberia, has improved its offer for the total takeover of Barcelona-based Vueling, one of the few airlines in Europe which has earned a profit in the last few years. Earlier this month, Vueling’s board rejected IAG’s offer, presented in November, as they considered it to be too low. Now, the shareholders have had the last word. IAG already controls 45.85% of Vueling. With the new offer, if IAG manages to control 50.01% of Vueling – despite it officially aiming to get 100% of the Catalan airline shares – the operation will go ahead.
Madrid (ACN).- IAG, the airline formed after the merger of British Airways and Iberia, has improved its offer for the total takeover of Barcelona-based Vueling, one of the few airlines in Europe which has earned a profit in the last few years. Earlier this month, Vueling’s board rejected IAG’s offer, presented in November as they considered it to be too low, and passed the final decision to the shareholders. The offer of 7 euros per share set Vueling’s total value at €209.3 million. Now IAG, which already controls 45.85% of Vueling’s shares (which belong to Iberia), has raised its initial offer, with an increase from 7 euros per share to €9.25, an improvement of 32% on the initial price. IAG’s takeover offer was aiming to buy 100% of Vueling shares, therefore acquiring the remaining 54.15% of the Catalan airline. However, now IAG has not only increased the price per share but it has lowered the minimum acceptance condition in order to maximise the success of its offer. IAG will carry on with its take over offer if it gets 1.24 million shares, representing 4.16% of Vueling’s capital. With this amount IAG would control 50.01% of Vueling shares, having full control over the Barcelona-based company. In addition, IAG has enlarged the acceptance period of its offer, increasing from 39 to 48 calendar days. The initial offer was due to expire on the 8th of April.
The Spanish Stock Market Regulation Authority (CNMV) had suspended Vueling’s trading until the IAG confirmed the details of the new offer. Once the new price was released, Vueling’s shares increased their value by 10% on the stock exchange, reaching €9.30, just above IAG’s price.