LATAM Brazil plans to ditch Multiplus FFP in 2024, seeks to acquire the 27.3% shares in market

    LATAM Airlines Group announced (05-Aug-2018) LATAM Airlines Brazil plans to not renew or sign a new contract with Multiplus SA, its FFP subsidiary, after 31-Dec-2024. LATAM Airlines Group has the intention to acquire all Multiplus ordinary shares in a delisting tender offer and remove Multiplus from the B3 stock exchange. Approximately 27.3% of Multiplus’ shares are circulating in the market. LATAM Airlines Brazil plans to buy each share for BRL27.22 (USD6.54), an 11.6% increase over the price the share closed on 04-Sep-2018. The total value is approximately BRL1.2 billion (USD289 million). LATAM Airlines Group is operating two distinct FFPs following the merger between TAM Airlines and LAN Airlines. LATAM Airlines Group argued that “in spite of the coordinated efforts… the product was not sufficient to reinforce Multiplus’ leadership in the Brazilian FFP market”. LATAM Airlines Brazil plans to administer its FFP internally to “protect” passengers yields and have flexibility in its revenue strategy. Upon the integration of Multiplus clients with LATAM Pass, LATAM Airlines Group expects to manage the fourth largest FFP in the world with 21.1 million clients. This transaction should generate “significant revenues for LATAM Airlines Brazil”. [more – original PR]