Qatar Airways To Take 10% Stake In Latam -- WSJ
July 13 2016 - 3:03AM
Dow Jones News
By Robert Wall
FARNBOROUGH, ENGLAND -- Qatar Airways Tuesday said it plans to
take a stake of up to 10% in LATAM Airlines Group as it continues
to expand its investment in other carriers.
Qatar Airways chief executive Akbar Al Baker said the airline
would invest $613 million in the struggling Latin American carrier,
which has been hit by weak local demand.
Mr. Al Baker said he and his company "recognize short-term
localized challenges," but remained confident in LATAM's long-term
prospects.
Under the terms of the deal LATAM would also hold a fresh
fundraising round, to which Qatar Airways would subscribe.
Qatar Airways is a oneworld alliance partner with LATAM, and is
also the largest shareholder in British Airways parent
International Consolidated Airlines Group SA, also a member of the
alliance.
LATAM shareholders still have to approve the investment at an
extraordinary shareholder meeting, which will take place before
Sept. 2.
"We believe this investment will allow us to explore new
possibilities to connect South America with the Middle East and
Asia and strengthen our financial position," LATAM chief executive
Enrique Cueto said.
Qatar Airways also is considering a stake in Italy's Meridiana
airline, though Mr. Al Baker Monday expressed concern talks with
unions weren't progressing as hoped. Qatar Airways may have to walk
away from the investment, he indicated.
Write to Robert Wall at robert.wall@wsj.com
Corrections & Amplifications
Qatar Airways chief executive Akbar Al Baker said the airline
would invest $613 million in LATAM Airlines. An earlier version of
this article put the figure at $618 million.
(END) Dow Jones Newswires
July 13, 2016 02:48 ET (06:48 GMT)
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