IAG offers €100m loan to Globalia for 20 per cent stake in Air Europa
British Airways’ owner IAG offered today a €100m loan to Air Europa in exchange for a 20 per cent stake in the company.
The airline said the seven-year unsecured loan would be offered to the carrier’s owner Globalia and, following regulatory approvals, it could be turned into the 20 per cent share.
“This agreement will give us time to evaluate with exclusivity alternative structures that may be of interest to both companies and offer significant benefits for their customers, employees and shareholders,” IAG’s boss Luis Gallego said.
IAG was forced in December to pay €75m to Globalia after it back out of a €500m takeover because of the pandemic’s impact on the Spanish group’s finance, City PM reported.
Competition concerns, including two investigations carried out by the European Commission and the UK Competition and Markets Authority, also plagued the deal.