 offer to purchase a minority stake in the indebted Spanish carrier.){kind=link}
Turkish Airlines on Tuesday said Spain’s Air Europa had accepted its 300 million euro ($350 million) offer to purchase a minority stake in the indebted Spanish carrier.
In a filing with Turkey’s Public Disclosure Platform (KAP), the flag carrier said “the binding offer submitted has been accepted by Air Europa” and that procedures to close the deal had begun.
The transaction will mainly consist of a capital increase, which will be converted into shares once the process is finalized. The airline said the exact minority stake to be acquired would be determined after “technical and financial adjustments” at closing.
Media reports in Spain and Turkey put the figure at around 26 percent.
Turkish Airlines said the deal was expected to close within six to 12 months, subject to regulatory approval, including from the Spanish government.
The airline submitted its binding offer on Tuesday to Globalia, the Spanish tourism group that owns 80 percent of Air Europa. The remaining 20 percent is held by British Airways owner International Airlines Group (IAG).
The move comes two weeks after rival bidders Lufthansa and Air France-KLM dropped out of talks to take a stake in the Spanish airline.
Turkish Airlines had announced on August 7 that it would submit a binding offer. The carrier said the complementary nature of its global passenger and cargo network and Air Europa’s strong position in the Iberian Peninsula and Latin America would “contribute to achieving scaled and rapid growth in the Latin American market” and create new revenue channels.
IAG last year abandoned a bid to fully acquire Air Europa due to regulatory constraints.
© Agence France-Presse