Spirit Airlines, Frontier Group to merge in $6.6bn deal
Frontier Group Hldgs Inc
$7.17
11:00 27/12/24
Low-cost US airlines Spirit Airlines and Frontier Group have agreed to merge in a $6.6bn cash and share deal.
Spirit Airlines Inc
n/a
11:00 26/12/24
Under the terms of the agreement, Spirit shareholders will receive 1.9126 shares of Frontier plus $2.13 in cash for each existing Spirit share they own. This represents a 19% premium to the closing Spirit share price on Friday.
Spirit chief executive and president Ted Christie said: "We are thrilled to join forces with Frontier to further democratise air travel.
"This transaction is centred around creating an aggressive ultra-low fare competitor to serve our guests even better, expand career opportunities for our team members and increase competitive pressure, resulting in more consumer-friendly fares for the flying public. We look forward to uniting our talented teams to shake up the airline industry while also continuing our commitment to excellent guest service."
Once the deal closes, existing Frontier shareholders will own around 51.5%, while Spirit holders will own 48.5% of the combined airline, on a fully diluted basis.