Doha: Qatar Airways and LATAM Airlines Group, Latin America's leading airline group, on Tuesday announced they have entered into a subscription agreement providing for Qatar Airways to acquire up to 10 per cent of LATAM's total shares, which will be acquired in connection with a capital increase, the Qatari airline said in a press release.
According to the agreement, which is expected to be completed within the fourth quarter of 2016, LATAM Airlines Group will hold an extraordinary shareholders meeting no later than September 2 to propose a capital increase for $613 million through the issuance of new shares at a price of $10 per share.
Qatar Airways Group CEO Akbar Al Baker and LATAM Airlines Group CEO Enrique Cueto made the announcement at the Farnborough International Air Show in England.
"LATAM represents an exciting opportunity to invest and support the development of our long-term relationship. As a leading airline in Latin America, and key member of one world, this investment provides potential opportunities for Qatar Airways' global network, alongside our successful investment in IAG," said Al Baker.
In turn, Cueto expressed delight to have Qatar Airways as a new shareholder of LATAM. "This investment recognizes LATAM's achievements and supports our project for the future. In addition to strengthening our financial position, it will allow us to explore new opportunities for connectivity with Asia and the Middle East, as well as other potential areas of cooperation."
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