- Spirit Airlines Inc (NYSE:SAVE) and Frontier Group Holdings Inc (NASDAQ:ULCC), the parent company of Frontier Airlines, Inc., amended their previously announced merger agreement.
- In the unlikely event the combination is not consummated for antitrust reasons, Frontier would pay a reverse termination fee of $250 million, or $2.23 per share, to Spirit under the provisions of the amended merger agreement.
- Related: Spirit Airlines Sticks To Frontier Deal - Ball Is In The Shareholders' Court Now
- "Since announcing our transaction with Frontier, we have had extensive constructive conversations with our stockholders, who have expressed support for the strategic rationale of our combination but a desire for additional stockholder protections. After discussing this feedback with the Frontier Board and management team, we have agreed to amend the merger agreement," commented Ted Christie, President, and CEO of Spirit.
- Also read: Spirit Airlines Shares Fly High As Bidding War Heats Up
- "The combination of a higher reverse termination fee and a much greater likelihood to close in a Frontier merger provides substantially more regulatory protection for Spirit stockholders than the transaction proposed by JetBlue," stated Mac Gardner, Chairman of the Board of Spirit. "
- JetBlue Airways Corp (NASDAQ:JBLU) commented on the above announcement, "Today's announcement demonstrates why, in their shareholders' best interest, they should negotiate with us in good faith—which, yet again, they have failed to do. Spirit's Board only went back to Frontier under pressure, when it became increasingly clear their shareholders would decisively reject the Spirit Board's flawed process and Frontier's inferior transaction."
- Price Action: SAVE shares are trading lower by 0.99% at $20.90 during the premarket session on Friday. ULCC shares closed higher by 0.59% at $10.24 on Thursday.
- Photo Via Wikimedia Commons
