Delta Reveals Intention to Acquire Additional Shares of Aeromexico

Delta Air Lines intends to acquire up to an additional 32 percent of the outstanding capital stock of Aeromexico S.A.B. de C.V. through a cash tender offer for MXP$43.59 per share. This investment will strengthen the airlines’ partnership, provide more travel options for customers in the U.S. and Mexico and deliver the industry’s best customer experience.

Currently, Delta owns approximately 4.1 percent of the outstanding shares of Grupo Aeromexico and holds an option to acquire an additional 8.1 percent. Separately, the Delta pension trust holds options to acquire approximately 4.6 percent of Aeromexico.

Following completion of the tender offer, Delta and the Delta pension trust collectively would own and/or have options to acquire up to a total of 49 percent of the outstanding shares of Aeromexico.

“This new investment demonstrates Delta’s confidence in Mexico’s future and deepens our relationship with Aeromexico, cementing Delta’s long-term commitment to the customers we serve to, from and through Latin America,” said Delta President Ed Bastian.

Delta intends to commence the tender offer once required regulatory approvals in Mexico and the United States have been obtained.

The tender offer will be subject to terms to be disclosed and customary closing conditions, including the acquisition by Delta of a minimum number of shares in the tender offer. The transaction also is subject to approval by the Boards of Directors of Delta and Aeromexico.

Delta and Aeromexico launched their first codeshare in 1994. In 2011, Delta entered into an enhanced commercial agreement with Aeromexico, and in 2012, Delta invested USD$65 million in shares of Aeromexico, the parent company of Aeromexico.

In March, Delta and Aeromexico filed an application with the U.S. Department of Transportation seeking antitrust immunity for a new joint venture on flights between the United States and Mexico.

The request also was submitted for approval to the Mexican antitrust authorities, the Federal Economic Competition Commission.