LATAM Airlines Group and Qatar Airways sign agreement for 10% acquisition of LATAM

LATAM Airlines Group and Qatar Airways announced (12-Jul-2016) entered into a subscription agreement, under which Qatar Airways will acquire up to 10% of the share capital of LATAM Airlines Group, via a capital increase. LATAM will hold an extraordinary shareholders meeting no later than 02-Sep-2016 to propose a capital increase of USD613 million, through the issuance of new shares at USD10 per share. The transaction is expected to be completed within the 4Q2016. Qatar Airways was advised by HSBC Bank, Weil, Gotshall & Manges LLP and Carey whilst LATAM Airlines Group was advised by JP Morgan, Claro & Cía y Sullivan & Cromwell. LATAM Airlines Group CEO Enrique Cueto stated, "We are proud to announce Qatar Airways as a new shareholder of LATAM, reaffirming our bond as existing members of the oneworld alliance." [more - original PR - English/Spanish/Portuguese] [more - original PR]

LATAM Airlines Group: "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." Enrique Cueto, CEO. Source: LATAM Airlines Group, 12-Jul-2016.

Qatar Airways "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." Akbar Al Baker, CEO. Source: Qatar Airways, 12-Jul-2016.