The subscription agreement sees Qatar Airways take on up to 10% of shares the LATAM. An Extraordinary Shareholders Meeting will be held next month, where Qatar Airways will propose a capital increase to the tune of US$613m through the issuance of new shares at US$10 per share. It is hoped the transaction will be completed by the end of the year.
The announcement was made by the CEOs of both airlines. Qatar Airways group Chief Executive, Akbar Al Baker, said: "LATAM represents an exciting opportunity to invest and support the development of our long-term relationship. As a leading airline in Latin America, and key member of oneworld, this investment provides potential opportunities for Qatar Airways' global network, alongside our successful investment in IAG.”
Enrique Cueto, CEO of LATAM Airlines Group, also commented. "We are proud to announce Qatar Airways as a new shareholder of LATAM, reaffirming our bond as existing members of the oneworld alliance.” He went on to say that the investment supports LATAM’s achievements as well as its ambitions for the future.
“In addition to strengthening our financial position, it will allow us to explore new opportunities for connectivity with Asia and the Middle East, as well as other potential areas of co-operation", concluded Cueto.
