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LAN Airlines announces agreement to acquire Colombian airline AIRES

28-Oct-2010 1:05 PM

LAN Airlines announced (27-Oct-2010) an agreement to acquire 98.942% of the outstanding shares of AIRES, through the purchase of its parent entities. The acquisition price is USD32.5 million, to be adjusted according to variations in AIRES' debt between the value at closing of the transaction and the value as stated in the company's financial statements as of 31-Aug-2010. The estimated time frame in order to conclude the due diligence process and finalise the acquisition is between 30 and 60 days from the signing of this agreement. Once the acquisition occurs, AIRES would become an affiliate of LAN Airlines and each Company would comply with the foreign ownership and control regulations in each country where they operate. If the combination with Brazilian airline TAM is successful, AIRES would become part of the new Latin American airline group, LATAM Airlines Group S.A. [more]