IAG offers loan to Air Europa owner, could convert to 20% stake

LONDON (Reuters) – Iberia-owner IAG has struck a deal to provide a 100 million euro, seven-year unsecured loan to Globalia which could be turned into a 20% equity holding in its Air Europa airline, it said on Thursday.

Iberia had agreed to buy Air Europa in 2019 but terminated the deal in December 2021, when IAG said it would seek alternative structures for a tie up.

IAG said on Thursday that subject to regulatory approvals from syndicated banks, it could convert the loan into an up to 20% equity stake in Air Europa.

“This agreement will give us time to evaluate with exclusivity alternative structures that may be of interest toboth companies and offer significant benefits for their customers, employees and shareholders,” IAG CEO Luis Gallego said.

(Reporting by Kate Holton, Editing by Paul Sandle)