Llucmajor-based Air Europa, part of the Globalia group, have accepted a €300 million offer from Turkish Airlines for a minority stake in the airline.
Air Europa's chairman, Juan José Hidalgo, signed the letter of acceptance of the offer on Tuesday afternoon. Under the deal, Turkish Airlines will provide €275 million, which will initially be in the form of a loan and later be converted into shares once the transaction is approved by the relevant regulatory bodies. The other €25 million will be for the imminent purchase of shares. In all, Turkish Airlines will acquire between 26 and 27% of the capital.
With the 275 million euros, plus Air Europa's cash balance, the airline plans to repay the 475 million euro loan from SEPI, the Spanish Government holding company for publicly-owned shares. This loan was a bailout after the pandemic hit.
IAG, via Iberia, own a 20% stake in Air Europa. Iberia had once been prepared to make a 100% acquisition of Air Europa. But the proposed purchase didn't satisfy European competition regulators.