Qatar Airways says it has purchased a 10-percent stake in Chile’s LATAM Airlines Group for $608 million.
The Doha-based state airline announced the stock purchase late Wednesday.
LATAM announced in mid-July an agreement in which Qatar Airways would buy 10 percent of the company via the issuance of new shares, with a payment of $10 per share. In the final deal, Qatar purchased 60.8 million LATAM shares, the company said.
“The entrance of Qatar Airways into the ownership (of LATAM) is an opportunity to develop a long-term relationship and explore new opportunities for connectivity with Asia and the Middle East,” LATAM said in a statement.
The Qatar deal forced the Chilean Cueto family and the Brazilian Amaro family to modify the ownership structure of LATAM in September so as not to dilute their participation.
LATAM was created when Chile’s LAN took over Brazil’s TAM in 2012. The airline flies to some 140 destinations in 25 countries.
LATAM stock closed at $8.42 a share Wednesday, up 1.6 percent.
Qatar Airways operates a fleet of 192 aircraft out of its hub in the vast new Hamad International Airport in Doha, which is preparing to host soccer’s World Cup in 2022.
It is one of the Middle East’s biggest carriers, along with Dubai-based Emirates Airline and the Abu-Dhabi based Etihad Airways. The three airlines increasingly have challenged Western airlines in long-haul flights.

Source: Arab News