Frontier and Spirit Airlines are upping the ante in the competitive world of discount flying with a $3 billion combination.
The cash and stock deal, on a combined basis, will produce annual revenues of $5.3 billion and synergies of $500 million once the deal is complete.
Existing Frontier shareholders will own approximately 51.5% and existing Spirit stockholders will own approximately 48.5% of the combined airline. The transaction is expected to close in the second half of the year. Spirit shareholders will receive 1.9126 shares of Frontier plus $2.13 in cash for each existing Spirit share they own. This implies a value of $25.83 per Spirit share at Frontier’s closing stock price of $12.39 on Friday.
The deal comes as many airlines, including Spirit and larger carriers such as American and Southwest, are experiencing tougher staffing issues producing delays and canceled flights that can last for days.
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Frontier Airlines buying Spirit in $3B deal, creating nation's fifth largest carrierThe merger of these two budget airlines is expected to make both more competitive against larger rivals
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Frontier Airlines buying Spirit in $3B deal, creating nation's fifth largest carrierThe merger of these two budget airlines is expected to make both more competitive against larger rivals
Lire la suite »
Spirit Airlines and Frontier Airlines to merge, creating nation's 5th largest carrierFrontier Airlines and Spirit Airlines announced a merger that would create the fifth-largest airline in the U.S. and made their stock prices jump on Wall Street early Monday.
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