Spirit shareholders will receive 1.9126 shares of Frontier in addition to $2.13 in cash for each share of Spirit they own, the companies said.
Photo: David Zalubowski/Associated Press
Spirit Airlines Inc. SAVE 0.18% and Frontier Group ULCC -1.43% Holdings Inc. said they are merging in a cash-and-stock deal valued at $6.6 billion.
Spirit shareholders will receive 1.9126 shares of Frontier in addition to $2.13 in cash for each share of Spirit they own, the companies said. At Frontier’s closing stock price on Friday of $12.39, that implies a value of $25.83 a share for Spirit, representing a 19% premium over the stock’s closing price on Friday.
Existing Frontier shareholders will own about 51.5% of the combined company on closing of the deal.
“This transaction is centered around creating an aggressive ultra-low fare competitor to serve our guests even better, expand career opportunities for our team members and increase competitive pressure, resulting in more consumer-friendly fares for the flying public,” Spirit President and Chief Executive Ted Christie said.
Frontier Chairman William Franke will become chairman of the combined company’s board.
Shares of Spirit rose more than 11% in premarket trading Monday after the deal was announced. Frontier stock fell almost 3% in the premarket.
Write to Will Feuer at [email protected]
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