Spirit Airlines postpones Frontier vote after latest offer from JetBlue
Spirit Airlines (S64) (SAVE) has postponed a shareholder meeting regarding its proposed buyout by Frontier Group after receiving the latest counteroffer from JetBlue Airways. The meeting had been due to take place on June 10, 2022.
The decision to postpone the vote comes after JetBlue (JBLU), which aims to stop a potential merger between Spirit and Frontier Airlines, improved its offer.
“The Special Meeting was postponed allowing the Spirit Board of Directors to continue discussions with Spirit stockholders, Frontier and JetBlue Airways,” Spirit announced in its latest statement.
JetBlue (JBLU), which issued its improved proposal on June 6, 2022, has offered to pay Spirit’s shareholders $31.50 per share in cash, including $30 at deal close and $1.50 at prepayment. This is compared to $30 per share under the initial proposal. JetBlue (JBLU) also boosted its reverse break-up fee from an initial $200 million to $350 million, which the airline will pay to Spirit’s shareholders if a deal between the two isn’t completed for antitrust reasons.
Meanwhile, Frontier Group has offered $250 million in reverse break-up fees.
The meeting, during which Spirit’s shareholders will vote for or against a merger with Frontier Group, the parent company of American ultra-low-cost carrier Frontier, was initially scheduled to take place on May 10, 2022. However, the vote was moved to June 10, 2022. At the time, Spirit reaffirmed its initial position and continued to favor Frontier’s proposal.
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