The investment company Indigo Partners will invest 9.4 billion ISK (75.88 million $, 67.23 million €) in the airline WOW Air. This was revealed in a statement on WOW Air’s website earlier today. The two companies have agreed in principle on the deal, as certain conditions have to be met for the completion of the transaction.
Indigo Partners and WOW Air made a temporary agreement on November 30, after there was a breakdown in a previous agreement between Icelandair and WOW Air. It has now been revealed how large Indigo’s investment is, and how it will be performed.
Following successful completion of due diligence, Indigo Partners will acquire shares in WOW Air. Indigo will also consider the possibility of issuing a new super senior convertible loan to WOW to fund the airline’s recovery. In total, assuming successful diligence, Indigo’s investment will be for an amount up to 9.4 billion ISK.
WOW Air bondholders will be contacted to ensure they consent to amendments of terms and conditions on the shares which they own. They will be contacted from today, December 14, to January 17. Any consent from shareholders will be declared void if the purchase has not been completed by February 28, 2019.
WOW Air’s CEO and founder Skúli Mogensen recently issued that the company’s operational model will be amended to a model similar to super-low-fare airlines that Indigo Partners normally work with. WOW Air laid off 111 full time employees yesterday, and around 350 in total. The airline’s aeroplane fleet will also decrease from 20 planes to 11.