Iberia has a practically clear path to take over 20% of the capital of Air Europa and thus take a decisive step on the road to the complete acquisition of the airline from the Hidalgo family.
As announced yesterday in Washington by the president of Iberia, Javier Sánchez-Prieto, both the State Society for Industrial Participations (SEPI) and the bank syndicate that supports the operation have given the green light to the 100 million euro loan that will become that 20% participation.
This is a seven-year unsecured loan by International Airlines Group (AIG), as Iberia's parent company, to the Globalia tourism group as owner of Air Europa. With it, AIG, which also groups British Airways, secures a fifth of the capital of the airline from its now competitor.
The agreement grants Iberia a period of exclusivity of one year in the negotiation of the purchase of Air Europa, while the talks are carried out, and is accompanied by a right to match any offer from third parties for said airline in the next three years. . Iberia also has an exit prerogative together with Globalia in case the latter decides to sell Air Europa at any time.
The agreement was subject to the authorization of SEPI and the syndicated banks that facilitated the loan contract, partially guaranteed by the Official Credit Institute (ICO) and the Industrial Participation Company itself.
Now the approval of the Competition authorities of Spain, Germany and the United Kingdom, countries in which Air Europa operates, is missing so that the loan becomes 20% of the capital of that company. But in principle, no obstacles are foreseen as it is a purely financial operation that does not imply that Iberia will influence the management of Air Europa.
The convertible loan is "a start to give continuity to the project" of taking over the entire Globalia airline, said Sánchez-Prieto: an objective that is estimated to take a year and a half of procedures, including authorization from the authority of the Competition of the European Commission.
The president of Iberia went to the US capital to present the resumption of direct flights Madrid-Washington and Madrid-San Francisco, suspended in 2020 as a result of the pandemic, as well as the opening of a new Madrid-Dallas line.
