Mexican budget airline Volaris BMV:VOLAR/A said on Thursday that shareholders approved its merger with rival Viva Aerobus.
The all-stock transaction will see Volaris emerge as the surviving entity while Viva Aerobus ceases to exist, according to a filing with Mexico's stock exchange. Volaris will issue new shares representing 50% of the combined company on a fully diluted basis to Viva shareholders.
DEAL DETAILS
• Reuters exclusively reported the merger in December before the two carriers confirmed.
• Volaris will increase capital by up to $248.3 million through new share issuance.
• The merger remains subject to regulatory approvals in Mexico, the United States and Colombia.
• The merger requires the companies to maintain pre-merger business activities for at least one year to avoid tax implications under Mexican law.