Qatar Airways acquire 10% of LATAM Airlines

LATAM Airlines Group and Qatar Airways, both members of the oneworld alliance, have entered into a subscription agreement providing for Qatar Airways to acquire up to 10 per cent of LATAM’s total shares, which will be acquired in connection with a capital increase. As part of the agreement, LATAM Airlines Group will hold an Extraordinary Shareholders Meeting no later than 2 September, 2016 to propose a capital increase in the amount of $613 million through the issuance of new shares at a price of $10 per share. The announcement was made at the Farnborough International Air Show in England, by both airlines’ CEOs: His Excellency Akbar Al Baker, Group Chief Executive of Qatar Airways and Enrique Cueto, CEO of LATAM Airlines Group. The companies expect the transaction to be completed within the fourth quarter of 2016. Qatar Airways was advised by HSBC Bank plc, Weil, Gotshall & Manges LLP and Carey, whilst LATAM Airlines Group was advised by JP Morgan, Claro & Cía y Sullivan & Cromwell.