An Allegiant Airlines jet takes off from Las Vegas Airport.
Nick Potts | Getty Images
Allegiant Travel On Sunday, it also announced it would acquire a leisure airline. country of the sun The plan, a $1.5 billion cash-and-stock deal, comes as the U.S. low-cost carrier faces rising costs due to the pandemic and an increase in the number of domestic flights it flies.
The transaction has an implied value of $18.89 per Sun Country share. The company’s shareholders will receive 0.1557 shares of Allegiant common stock and $4.10 in cash for each Sun Country share they own, Allegiant announced Sunday.
The deal represents a roughly 20% premium to Sun Country’s Friday closing price of $15.77, the airline said.
Allegiant Travel Co, Sun Country Airlines, NYSE Arca Airlines Index
The deal will test the Trump administration’s appetite for airline mergers.
In an interview with CNBC, Allegiant Air CEO Greg Anderson expressed confidence that the deal would be approved, noting that the two airlines have little network overlap. Allegiant approached Sun Country in late fall, he said, adding that Sun Country has an operating contract. Amazon It is set to continue.
The Biden administration has filed an objection. jet blue airlines Acquisition of Spirit Airlines. The company is currently fighting for survival after falling into bankruptcy for the second time in less than a year. A federal judge sided with the Biden Justice Department and blocked the JetBlue Spirit deal two years ago on antitrust grounds.
But the Biden administration has made it clear. alaska airline’s In 2024, it will acquire Hawaiian Airlines for approximately $2 billion.
Telecom executives will hold a special conference call Monday at 8:30 a.m. ET to discuss the deal.
