Air Europa accepts Turkish Airlines' 300 million offer

PalmAir Europa accepted this Tuesday the acquisition offer for a minority stake in the company presented by Turkish Airlines (THY), amounting to €300 million, according to sources close to the transaction, EFE learned on Tuesday.

Air Europa's president, Juan José Hidalgo, signed the letter of acceptance of the offer just after three in the afternoon. Finally, Turkish Airlines offered €275 million, which will initially be a loan to Air Europa and will then be converted into shares once the transaction is authorized by the relevant regulatory bodies.

In addition to these €275 million, another €25 million will be used by THY to purchase shares imminently. THY will acquire 26% or 27% of the capital, an amount that must be determined once all the balance sheets are completed, according to the sources. Both companies are expected to issue a statement announcing the transaction this Tuesday. With those 275 million euros, plus the cash Air Europa has, the airline plans to repay the 475 million euro loan from SEPI (Sociedad Estatal de Participaciones Industriales). IAG also holds a 20% stake in Air Europa.