TELETRADER News
2/7/2022, 12:55 PM
(Source: TeleTrader)
Frontier Hold...-0.86%
Spirit Airlin...+2.31%
Spirit, Frontier to merge in $6.6 billion deal
Spirit Airlines Inc. and Frontier Group Holdings Inc. announced on Monday that they will combine in a single airline in a transaction valued at $6.6 billion in total.
According to the agreement between the two companies, Frontier's current stockholders will have a 51.5% stake and their Spirit counterparts will own the remaining 48.5% of the new company. The combined airline will have 12 directors, including the CEO, on the board of directors, with seven nominated by Frontier and five by Spirit. Frontier's Board of Directors Chair William A. Franke will be the chairman of the board of the combined company.
The merger deal "will create America's most competitive ultra-low fare airline for the benefit of consumers," Franke said in a statement.