Vueling’s Board accepts the new takeover conditions offered by British Airways-Iberia

Barcelona (ACN).- The Board of the Barcelona-based airline Vueling accepted the new takeover offer presented by IAG, the merger between British Airways and Iberia. The Board had previously rejected the initial offer and so IAG improved it, increasing from a price of €7 per share to €9.25. The board of the Barcelona-based airline communicated to the Spanish Stock Market Authority (CNMV) that the new conditions were “reasonable”, as they were released on Tuesday. Consequently, Vueling’s Board will recommend that the shareholders accept the offer. In fact, all the Board members, including Vueling’s President Josep Piqué, have announced that they want to sell their shares to IAG. Iberia already controls 45.85% of Vueling and IAG’s aim is to take full control of the Catalan airline. Therefore, the takeover is on the condition that they are able to acquire at least 4.16% of Vueling’s shares, in order to control at least 50.01% of the Barcelona-based airline. The deadline to accept the offer expires on the 19^th of April.

In November, IAG announced a takeover offer on 100% of the Vueling shares. Iberia already owned 45.85% of the Barcelona-based airline and therefore the takeover offer was for the remaining 54.15%. On the 27^th of February, IAG formally presented the takeover offer, offering €7 per share. On the 7^th of March, Vueling’s Board rejected the offer as they considered it to be too low and recommended that the shareholders not sell their shares to IAG. On the 27^th of March, IAG improved its initial offer, increasing from €7 to €9.25 per share. On the 4^th of April the CNMV approved IAG’s new conditions and five days later, Vueling’s Board gave the green light to the operation.

IAG has made its offer on the condition that they are able to buy at least 4.16% of Vueling’s shares, corresponding to €1.24 million shares. This represents €11.5 million, with the new offered price. If IAG buys more than 4.16% of Vueling’s shares, the operation will go ahead and IAG will completely control the Barcelona-based airline as it will own more than 50% of its shares. If IAG finally buys all the remaining 16.19 million shares that are currently not owned by Iberia, it will have to pay some €150 million. After the 19^th of April it will be announced whether IAG will take full control of one of the few airlines in Europe to make a profit in the last few years.