S&C Advises on Tender Offer for LATAM Airlines Shares  

January 6, 2020

S&C client Delta Air Lines and LATAM Airlines forged a strategic partnership to combine the strengths of the leading airlines in North and Latin America. In an important milestone in the new relationship, Delta has invested $1.9 billion for a 20% stake in LATAM through a public tender offer; approximately 525 million LATAM shares (including American Depositary Shares) were tendered, which represented 87% of the total LATAM shares. Delta accepted for purchase approximately 121 million LATAM shares and ADSs, representing 20% of the total LATAM shares. Delta is separately providing $350 million to support the establishment of the partnership.

Through a planned joint venture, Delta and LATAM will hold the leading position in five of the top six Latin American markets from the United States. The airlines will together serve 435 destinations worldwide and carry more passengers between North America and Latin America than any other partnership.

The S&C team advising Delta included Werner Ahlers, Sergio Galvis, Dan Belke, Mimi Wu and Elan Spanjer. Bob Downes, George Sampas, John Horsfield-Bradbury and Evan Simpson advised on securities law and tender offer matters, and Ron Creamer and HK Kim advised on tax matters.