Qatar Airways Agrees To Acquire 10% Of LATAM Airlines - Corporate/Commercial Law - Mondaq Chile - Mondaq Business Briefing - Books and Journals - VLEX 649097357

Qatar Airways Agrees To Acquire 10% Of LATAM Airlines

Author:Mr Thomas Muskett-Ford

Qatar Airways has hired Weil, Gotshal & Manges LLP in New York and Carey in Santiago to acquire a 10 per cent stake in Chilean counterpart LATAM for US$613 million.

LATAM, the region's largest carrier, turned to Sullivan & Cromwell LLP's Washington, DC and New York offices and Claro & Cía in Santiago for the transaction, which was announced on Tuesday. The deal calls on LATAM shareholders to approve a capital increase through the issuance of new shares by the 2 September. Qatar will then acquire these shares, which will be priced at US$10 each.

LATAM's share price was up 17 per cent on Wednesday following the deal's announcement. The company has been struggling to stay solvent as economic recession, slowing foreign investment and currency fluctuations in countries across Latin America take their toll. This has led LATAM to pursue some of the most innovative financing options on the market, including a...

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