International Con Airlines acquires a further stake in Vueling

International Consolidated Airlines Group (IAG) said Tuesday that it has increased its stake in Vueling, the Spanish low cost carrier based in Barcelona, to 90.51 per cent after its shareholders accepted the recommendation of the Vueling board.

IAG's subsidiary Iberia already owns 45.85% of Vueling's shares and Iberia's board agreed not to tender them in the offer. The Spanish National Securities Market Commission (CNMV) announced that 82.48% of the remaining shareholders have accepted IAG's offer of €9.25 per share.

Altogether the acquisition cost €123.5m, and is expected to be completed on April 26th 2013.

Willie Walsh, IAG Chief Executive, said: "Vueling is a great airline and will be a welcome addition to IAG where it will benefit from the group's financial strength. We plan to retain Vueling's current business model and management structure and its strong base in Barcelona."

Vueling will be a standalone company within IAG with its chief executive Alex Cruz reporting into IAG Chief Executive Willie Walsh.

The share price rose 3.43% to 265.20p by 12:55 on Tuesday.

NR