Wednesday, May 22, 2024
Delta set to up its stake in Aeromexico

Delta set to up its stake in Aeromexico

Delta Air Lines has launched a cash tender offer to acquire additional shares of Grupo Aeromexico as it looks to acquire up to an additional 32 per cent.

Share purchases could increase Delta’s ownership in the parent of Delta’s partner Aeromexico to 49 per cent.

Completion of the cash tender offer is subject to certain conditions including acceptance of the offer by holders of at least 25 per cent of the outstanding shares of Grupo Aeroméxico and receipt of required antitrust approvals in Mexico.

Currently, Delta owns approximately 4.2 percent of the outstanding shares of Grupo Aeroméxico and holds options to acquire an additional 12.8 per cent.

If fully subscribed, following completion of the tender offer, Delta would own and/or have options to acquire up to a total of 49 per cent of the outstanding shares of Grupo Aeroméxico.

Delta’s chief executive officer, Ed Bastian says: “This is the next step in expanding our longstanding relationship with Aeromexico, a partnership built on our shared commitment to our customers in the US and Mexico.

“The tender offer and investment will further strengthen the relationship that will be established when our joint cooperation agreement is implemented in the second quarter.”

Delta and Aeroméxico launched their first codeshare in 1994. In 2011, Delta entered into an enhanced commercial agreement with Aeroméxico, and in 2012, Delta invested $65 million in shares of Grupo Aeroméxico, the parent company of Aeroméxico.

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James Graham

James Graham is an award-winning transport media journalist with a long background in the commercial freight sector, including commercial aviation and the aviation supply chain. He was the initial Air Cargo Week journalist and retuned later for a stint as editor. He continues his association as editor of the monthly supplements. He has reported for the newspaper from global locations as well as the UK.

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