LATAM Airlines Group S.A., Latin America’s leading airline group, and Qatar Airways, both members of the oneworld alliance, have entered into a subscription agreement providing for Qatar to acquire up to 10% of LATAM’s total shares, which will be acquired in connection with a capital increase.
As provided for in the agreement, LATAM will hold an Extraordinary Shareholders Meeting no later than Sept. 2 to propose a capital increase in the amount of US$613 million through the issuance of new shares at a price of US$10 per share.
The announcement was made at the Farnborough International Air Show in England, by both airlines’ CEOs – Akbar Al Baker, group chief executive of Qatar Airways and Enrique Cueto, CEO of LATAM Airlines Group.
“LATAM represents an exciting opportunity to invest and support the development of our long-term relationship. 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,” said Al Baker.
The companies expect the transaction to be completed within the fourth quarter of 2016.