Delta Air Lines Inc. announced on Sept. 26 a public tender offer to acquire a 20% stake in LATAM Airlines Group SA for $1.9 billion, or $16 per share, in cash and newly issued debt.
The deal is part of the two companies' new strategic partnership, in which Delta would also invest another $350 million.
In addition to the equity stake, Delta would also acquire four Airbus SE A350 jets from LATAM Airlines and assume the company's commitment to purchase 10 more aircraft of the same model.
Delta would also gain representation on the LATAM Airlines board.
The tender offer is subject to customary closing conditions and regulatory approvals.
Delta said the transaction is expected to be accretive to EPS over the next two years.
The deal would not affect Delta's financial commitments to shareholders and leverage ratio targets, the company added.
