Spirit Airlines and frontier Group Holdings have announced they have agreed to merge into a $ 6.6 billion deal, including net debt and liabilities.
Under the terms of the agreement, Spirit shareholders will receive 1.9126 Frontier shares plus $ 2.13 in cash for each share they hold, valued at $ 25.83 per share of spirit.
The amount corresponds to a premium of 19% against the closing price of Spirit on Friday and 26% premium against the weighted average volume prices of 30 days for Frontier and Spirit.
The deal values Spirit at $ 2.9 billion.
The merger is expected to be completed in the second half of the year and create a leading US airline with low fares.
“Together, Frontier and Spirit are expected to change the industry for the benefit of consumers, bringing more low fares to more travelers to more destinations across the US, Latin America and the Caribbean, including major cities and non-service communities,” they said. the two companies in a joint statement.
The company is expected to generate $ 1 billion in annual savings, offering more than 1,000 flights to more than 145 destinations in 19 countries and creating 10,000 direct jobs by 2026.
The merged company will have annual revenues of $ 5.3 billion, based on the results of 2021.
The company expects annual synergies of $ 500 million once the consolidation is completed.
Spirit’s share is up 13% pre-conference and Frontier’s 0.9%.
Source: Capital
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