SANTIAGO, Nov 16 (Reuters) - LATAM Airlines will delay a planned capital increase meant to allow Qatar Airways to take a stake in the Chile-headquartered regional carrier, as it waits for approval of the acquisition from Brazil’s competition regulator Cade.
In July, Qatar Airways agreed to acquire up to 10 percent of LATAM’s total shares following a capital increase of $613 million, through the issuance of new shares at $10 per share.
“The company has decided to postpone the capital increase considering that it is awaiting a resolution from Brazil’s competition regulator Cade concerning Qatar Airways’ acquisition of a stake in the company,” LATAM said in a statement late on Tuesday.
LATAM said it expects Cade to make a decision within the coming days and that it will then inform the market of the new dates for the capital increase.
LATAM was formed in a tie-up between Chile’s LAN and Brazil’s TAM in 2012, giving onetime investor darling LAN access to the region’s biggest market before U.S. carriers could swoop in. (Reporting by Anthony Esposito; Editing by Bill Trott)