Air Europa Accepts Turkish Airlines’ Offer of 300 Million Euros for a 27% Stake in Company
Air Europa confirmed this Tuesday that it has accepted an offer from Turkish Airlines for 27% of its equity. The deal amounts to 300 million euros and values the company at approximately 1.1 billion euros, according to reports from the EFE news agency.
Deal Details
The agreement includes two financial instruments:
- 275 million euros in a loan convertible into shares.
- 25 million euros directly in Air Europa equity.
The transaction was formalized with the signing of a letter of presentation by Juan José Hidalgo, the airline’s chairman.
Impact on Shareholding Structure
With this capital injection, Globalia, controlled by the Hidalgo family, will reduce its stake from 80% to approximately 53%, retaining majority control of the company.
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For its part, IAG, which had previously negotiated the purchase of Air Europa, retains its 20% stake. The group has maintained this shareholding through successive capital increases that helped to clean up the airline’s finances.
Regulatory Conditions
The operation requires authorization from Spanish authorities, as it constitutes an extra-community investment in a company considered strategic. In this context, the Spanish government retains the power to veto the transaction.
Financial Relief
The funds obtained will allow Air Europa to address the 475-million-euro loan granted by SEPI (the state-owned Sociedad Estatal de Participaciones Industriales) during the pandemic. This credit has an escalating interest rate, which will reach 9% in 2026. With the entry of the new partner and the available liquidity, the airline is confident it can repay this debt in the coming years.
Previous Attempts with Other Groups
Prior to the Turkish proposal, Air Europa had explored the possibility of selling a stake to both Air France-KLM and Lufthansa. However, both groups decided not to move forward with the process.
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