- Spirit Airlines Inc (NYSE:SAVE) Board has agreed to engage in discussions with JetBlue Airways (NASDAQ:JBLU) concerning an all-cash transaction for $33/share.
- Related: Spirit Airlines Gets Second Takeover Bid This Year: What Investors Should Know
- Spirit remains bound by the terms of the merger agreement with Frontier Group Holdings, Inc. (NASDAQ:ULCC). Spirit's Board has not determined that JetBlue's proposal constitutes a Superior Proposal.
- Related: Why Spirit Airlines Shares Are Taking Off
- Spirit notes that there can be no assurance that the discussions with JetBlue will result in a transaction.
- "We believe JetBlue is the best partner for Spirit, and we look forward to engaging with the Spirit Board to finalize our combination, to create a national low-fare challenger to the four large dominant U.S. carriers that will result in lower fares and better service for customers," commented Robin Hayes, CEO of JetBlue.
- As per JetBlue's offer, Spirit shareholders would acquire Spirit for $33 per share in cash, implying a fully diluted equity value of $3.6 billion. The proposal represents a premium of 52% to Spirit's undisturbed share price on February 4, 2022, and a premium of 50% to Spirit's closing share price on April 4, 2022.
- Price Action: SAVE shares are trading higher by 0.72% at $26.70, JBLU higher by 0.25% at $12.12, and ULCC higher by 0.85% at $10.70 during the premarket session on Friday.
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Spirit Airlines Plans To Initiate Discussions With JetBlue On $3.6B Bid
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