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IAG completes Vueling purchase following board agreement

IAG completes Vueling purchase following board agreement

Vueling, the Spanish low-cost carrier based in Barcelona, is to become part of International Airlines Group after the majority of its shareholders accepted IAG’s cash tender offer for the airline, following recommendation by the Vueling board.

IAG’s subsidiary Iberia already owns 45.85 per cent of Vueling’s shares and Iberia’s board agreed not to tender them in the offer.

The Spanish National Securities Market Commission (CNMV) has announced today that 82.48 per cent of the remaining shareholders have accepted IAG’s offer of €9.25 per share.

Therefore, the IAG group will own 90.51 per cent of Vueling.

The cost of purchasing the Vueling shares is €123.5 million.

Vueling will be a standalone company within IAG with its chief executive Alex Cruz reporting into IAG chief executive Willie Walsh.

Willie Walsh, IAG chief executive, said: “Vueling is a great airline and will be a welcome addition to IAG where it will benefit from the group’s financial strength.

“We plan to retain Vueling’s current business model and management structure and its strong base in Barcelona.”

The acquisition will be completed on April 26th, 2013.