International Airlines Group (IAG) - owner of Aer Lingus, British Airways, Iberia, and Vueling - has launched a share purchase programme for the purposes of hedging as part of its acquisition of Air Europa.
The programme was authorised at its annual general shareholders' meeting held on June 26, 2024. The programme will have a maximum amount of €70 million ($75.2 million) allocated to it. The shares will be purchased on both the London Stock Exchange and the Spanish stock exchanges.
It will acquire up to a maximum of 27.1 million ordinary shares, which represents 0.5% of the company's share capital as of July 1, 2024.
On June 15, 2022, IAG entered into a financing arrangement with Air Europa's parent company Globalia, where it provided a €100 million seven-year unsecured loan. The loan was convertible for a period of two years from inception into a fixed number of the shares of Air Europa. The company converted the loan into an investment in 20% of the share capital of Air Europa on August 16, 2022.
IAG proposed to acquire the remaining 80% of Air Europa on February 24, 2023, with it required to deliver shares to Globalia.
Goldman Sachs Bank Europe has been engaged to implement the share purchase programme and will make the share purchases on the company's behalf.
The share purchase programme will run through to August 2, 2024.
IAG launches share purchase programme as part of Air Europa acquisition
