Spirit Airlines has rejected Frontier Group's revised acquisition offer worth approximately $2.16 billion, stating that it is less beneficial to shareholders compared to its ongoing reorganization plan. Frontier's revised proposal included $400 million in debt and a 19% stake in Frontier, dropping the requirement for Spirit to complete a $350 million equity rights offering and waiving the $35 million termination fee. However, Spirit countered with a proposal offering shareholders $600 million in debt and $1.185 billion in equity, which Frontier rejected. The two airlines have been engaged in merger talks since 2022, but JetBlue Airways' attempt to acquire Spirit was ultimately blocked due to anti-competition concerns.
Spirit Airlines on Tuesday rejected Frontier Group’s acquisition offer, worth about $2.16 billion, saying the bid from its fellow ultra-low-cost carrier was less beneficial to shareholders than its ongoing reorganization plan. Frontier’s offer was a reiteration of its proposal from earlier this month in which it proposed Spirit’s shareholders would get $400 million in debt and a 19% stake in Frontier.
However, Spirit, which filed for bankruptcy protection last year and expects to complete its restructuring in the first quarter, said the revised proposal did not address certain material risks and issues it had previously identified. Instead, the Florida-based airline offered a counterproposal in which Spirit shareholders would get $600 million in debt and $1.185 billion in equity – which Frontier rejected.
MERGERS AND ACQUISITIONS AVIATION INDUSTRY SPIRIT AIRLINES FRONTIER GROUP BANKRUPTCY
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