British Airways and Iberia parent IAG is pursuing another share buy-back programme intended to support its proposed acquisition of Spanish operator Air Europa.

IAG states that it will acquire a maximum of just over 27 million shares, and has allocated €70 million ($75 million) to the programme.

The company is undertaking the share purchase in order to hedge its requirement to provide shares to Air Europa owner Globalia as part of IAG’s consideration for purchasing the carrier.

Financial firm Goldman Sachs Bank Europe will make the share purchases on IAG’s behalf, with the programme running from 1 July to 2 August.

Air Europa 787-c-Air Europa

Source: Air Europa

IAG is chasing the remaining 80% of Air Europa and would pay part of the consideration with shares

IAG holds 20% of Air Europa, following conversion of a €100 million loan, and is looking to take the remaining 80%.

It embarked on a similar buy-back last year under which it acquired 27 million shares for the purpose of pursuing Air Europa deal.

The shares are being held in treasury while IAG awaits regulatory clearance to progress with the acquisition.

IAG has offered €400 million for the 80% balance of Air Europa, with the initial €200 million payment on closing to comprise €100 million in IAG shares plus €100 million in cash. The remaining €200 million will be paid in cash over the subsequent two years.