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The Air Europa bail out without acquiring an interest, the option that most benefits Iberia
| News | Public and Regulatory Law
All are unknowns in the acquisition of Air Europa by Iberia. With the parties immersed in new negotiations after coronavirus broke the initial agreement, one of the key points in the process is the public rescue and clean-up of the Hidalgo family airline. The owners of Globalia and Air Europa have requested a EUR 400 million lifeline from the government.
The price of the operation was initially set at 1,000 million euros, but now Iberia is insisting on cutting it by at least half in view of the loss of value of Air Europa's assets. "The big beneficiary of the rescue will be Globalia, but also Iberia, because as the company's debt to the state increases, its value will fall and the purchase price will be lowered," explained Miguel Nieto, Andersen partner.
"It is as if they are giving Iberia the money to allow Air Europa to be viable," adds Nieto. The expert clarifies that the other option would be for the State to enter the capital, an option that seems to be ruled out and which would foreseeably increase the value of the company and consequently the cost of the operation for Iberia, which would also have to buy its share of the company's shareholders from SEPI (State Industrial Ownership Corporation).
You can read the full article in Vozpópuli.
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