Qatar Airways buys 10 percent stake in LATAM

Qatar Airways buys 10 percent stake in LATAM

Posted By : STAT Times 12-07-2016 00:00:00

July 12, 2016: Qatar Airways stated that it shall purchase a stake of up to 10 percent in LATAM Airlines Group, as a part of its plans to expand its investment in other carriers.

"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 oneworld, this investment provides potential opportunities for Qatar Airways’ global network, alongside our successful investment in IAG," said Akbar Al Baker, group chief executive of Qatar Airways.

Both organisatons announced that they have entered into a subscription agreement providing for Qatar Airways to acquire up to 10 percent of LATAM’s total shares, which will be acquired in connection with a capital increase.

As provided for in the subscription agreement, LATAM Airlines Group will hold an Extraordinary Shareholders Meeting no later than 2 September, 2016 to propose a capital increase in the amount of US$613 million through the issuance of new shares at a price of US$10 per share. The companies expect the transaction to be completed within the fourth quarter of 2016

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