IAG seals Vueling takeover

London
Source:
This story is sourced from Pro
See more Pro news »

Vueling is to be taken over by International Airlines Group.

A majority of shareholders accepted a cash tender offer following recommendation by Vueling's board, says IAG.

IAG subsidiary Iberia already owns 45.85% of the Barcelona-based low-cost carrier's shares. Iberia's board agreed not to tender them in the offer. Of the remaining shareholders, 82.48% have accepted IAG's offer of €9.25 per share. The upshot is that IAG will own 90.51% of Vueling.

The cost of the share purchase is €123.5 million ($160 million).

Alex Cruz will continue to lead Vueling, which will become a standalone company within IAG. The Vueling chief executive will report to IAG chief Willie Walsh.

Vueling "will benefit from the group's financial strength", says Walsh, adding: "We plan to retain Vueling's current business model and management structure and its strong base in Barcelona."