Delta Announces Launch of Cash Tender Offer to Acquire Additional Shares of Grupo Aeroméxico

Latin America - español

Share purchases could increase ownership stake in Grupo Aeroméxico to up to 49 percent

News provided by

Feb 13, 2017, 09:05 ET

ATLANTA and MEXICO CITY, Feb. 13, 2017 /PRNewswire/ -- Delta Air Lines (NYSE: DAL) today launched a cash tender offer through the Mexican Stock Exchange to acquire up to an additional 32 percent of the outstanding capital stock of Grupo Aeroméxico S.A.B. de C.V. (BMV: AEROMEX) for MXN $53.00 per share. The difference from the previously announced tender price of MXN $43.59 is the result of interim exchange rate movements and other factors. Completion of the cash tender offer is subject to certain conditions including acceptance of the offer by holders of at least twenty-five percent (25%) of the outstanding shares of Grupo Aeroméxico and receipt of required antitrust approvals in Mexico.

Currently, Delta owns approximately 4.2 percent of the outstanding shares of Grupo Aeroméxico and holds options to acquire an additional 12.8 percent. If fully subscribed, following completion of the tender offer, Delta would own and/or have options to acquire up to a total of 49 percent of the outstanding shares of Grupo Aeroméxico.

"This is the next step in expanding our longstanding relationship with Aeromexico, a partnership built on our shared commitment to our customers in the U.S. and Mexico," said Ed Bastian, Delta's Chief Executive Officer. "The tender offer and investment will further strengthen the relationship that will be established when our joint cooperation agreement is implemented in the second quarter."

Delta and Aeroméxico launched their first codeshare in 1994. In 2011, Delta entered into an enhanced commercial agreement with Aeroméxico, and in 2012, Delta invested USD $65 million in shares of Grupo Aeroméxico, the parent company of Aeroméxico. In March 2015, Delta and Aeroméxico entered into a joint cooperation agreement relating to flights between the United States and Mexico and the parties filed an application with the U.S. Department of Transportation (DOT) seeking approval of the agreement and immunity from the United States antitrust laws for the joint cooperation. The agreement also was submitted for approval to the Mexican antitrust authorities, the Mexican Comisión Federal de Competencia Económica (Federal Economic Competition Commission or COFECE). In April 2016, COFECE issued its resolution regarding the proposed joint cooperation agreement, through which, the authorization of this agreement was subject to the acceptance of and compliance with certain requirements. In December 2016, the DOT issued a final order granting approval of, and immunity from the United States antitrust laws with respect to, the joint cooperation agreement, subject to certain conditions. Delta and Aeromexico have accepted the conditions required by COFECE and DOT and are in the process of implementing the required remedies.

About Delta Air Lines

Delta Air Lines is working to be the best U.S. airline in Latin America and the Caribbean. It has been honored with five World Travel Awards in 2016 in the categories of North America's Leading Airline and Leading U.S. Airline to Central America, to South America, to Caribbean and to Mexico for the second year in a row. Delta has been also recognized with LADEVI's 2016 Insignia Latam Excellence award for its service to the region. Delta continues to grow in Latin America through its long-term exclusive alliances with GOL Linhas Aéreas Inteligentes, Aeroméxico and Aerolíneas Argentinas, and is committed to building a solid regional footprint to enhance its global network and offer its customers the best overall experience. Delta provides service to 33 countries and 55 destinations in the region, offering over 1,900 weekly flights between the U.S. and Latin America/the Caribbean. Delta customers can also receive real-time, on-the-go travel assistance in Spanish and Portuguese through Twitter channels @DeltaAssist_ES and @DeltaAjuda from 9 a.m. to 7 p.m. EST. Brazilian customers can also access Delta's dedicated Brazilian Facebook page at http://www.facebook.com/DeltaAirLinesBrasil.

Delta Air Lines serves more than 180 million customers each year. In 2016, Delta was named to Fortune's top 50 Most Admired Companies in addition to being named the most admired airline for the fifth time in six years. Additionally, Delta has ranked No.1 in the Business Travel News Annual Airline survey for an unprecedented six consecutive years. With an industry-leading global network, Delta and the Delta Connection carriers offer service to 323 destinations in 57 countries on six continents. Headquartered in Atlanta, Delta employs more than 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 transatlantic 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 and LaGuardia, London-Heathrow, 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, and Facebook.com/delta.