Delta Announces Intention to Acquire Additional Shares of Grupo Aeromexico

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Latin America - español

Ownership stake in Grupo Aeromexico could increase to up to 49 percent

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Nov 18, 2015, 04:30 ET

ATLANTA and MEXICO CITY, Nov. 18, 2015 /PRNewswire/ -- Delta Air Lines (NYSE: DAL) intends to acquire up to an additional 32 percent of the outstanding capital stock of Grupo Aeromexico S.A.B. de C.V. (BMV: AEROMEX) through a cash tender offer for MXP$43.59 per share. This investment will strengthen the airlines' partnership, provide more travel options for customers in the U.S. and Mexico and deliver the industry's best customer experience.

Currently, Delta owns approximately 4.1 percent of the outstanding shares of Grupo Aeromexico and holds an option to acquire an additional 8.1 percent. Separately, the Delta pension trust holds options to acquire approximately 4.6 percent of Grupo Aeromexico. Following completion of the tender offer, Delta and the Delta pension trust collectively would own and/or have options to acquire up to a total of 49 percent of the outstanding shares of Grupo Aeromexico.

"This new investment demonstrates Delta's confidence in Mexico's future and deepens our relationship with Aeromexico, cementing Delta's long-term commitment to the customers we serve to, from and through Latin America," said Delta President Ed Bastian.

Delta intends to commence the tender offer once required regulatory approvals in Mexico and the United States have been obtained. The tender offer will be subject to terms to be disclosed and customary closing conditions, including the acquisition by Delta of a minimum number of shares in the tender offer. The transaction also is subject to approval by the Boards of Directors of Delta and Grupo Aeromexico.

Delta and Aeromexico launched their first codeshare in 1994. In 2011, Delta entered into an enhanced commercial agreement with Aeromexico, and in 2012, Delta invested USD$65 million in shares of Grupo Aeromexico, the parent company of Aeromexico. In March, Delta and Aeromexico filed an application with the U.S. Department of Transportation seeking antitrust immunity for a new joint venture on flights between the United States and Mexico. The request also was submitted for approval to the Mexican antitrust authorities, the Comision Federal de Competencia Economica (Federal Economic Competition Commission).

About Delta Air Lines

Delta Air Lines is working to be the best U.S. airline in Latin America and the Caribbean. Its achievements have been recognized with five World Travel Awards in 2015 in the categories of North America's Leading Airline and United States' Leading Airline to the Caribbean, to Central America, to South America and to Mexico. Additionally, Delta was recognized with two top customer service distinctions by Latin Trade's Best of Travel Annual Awards 2015, leading the categories of "Best Self-Check-In" and "Best Food and Beverage in the Delta One™ cabin". Delta continues to grow in Latin America through its long-term exclusive alliances with GOL Linhas AEreas Inteligentes and Aeromexico and is committed to building a solid regional footprint thus enhancing its global network and offering a better overall experience for its customers. Delta provides service to 32 countries and 49 destinations in the region offering over 1,300 weekly flights between Latin America/Caribbean and the U.S.

Delta Air Lines serves more than 170 million customers each year. Delta was named to FORTUNE magazine's top 50 World's Most Admired Companies in addition to being named the most admired airline for the fourth time in five years. Additionally, Delta has ranked No.1 in the Business Travel News Annual Airline survey for four consecutive years, a first for any airline. With an industry-leading global network, Delta and the Delta Connection carriers offer service to 316 destinations in 57 countries on six continents. Headquartered in Atlanta, Delta employs nearly 80,000 employees worldwide and operates a mainline fleet of more than 800 aircraft. The airline is a founding member of the SkyTeam global alliance and participates in the industry's leading trans-Atlantic joint venture with Air France-KLM and Alitalia as well as a joint venture with Virgin Atlantic. Including its worldwide alliance partners, Delta offers customers more than 15,000 daily flights, with key hubs and markets including Amsterdam, Atlanta, Boston, Detroit, Los Angeles, Minneapolis/St. Paul, New York-JFK, New York-LaGuardia, Paris-Charles de Gaulle, Salt Lake City, Seattle and Tokyo-Narita. Delta has invested billions of dollars in airport facilities, global products and services, and technology to enhance the customer experience in the air and on the ground. Additional information is available on the Delta News Hub, as well as delta.com, Twitter @DeltaNewsHub, Google.com/+Delta, Facebook.com/delta and Delta's blog takingoff.delta.com.