{"id":35785,"date":"2022-06-04T00:20:28","date_gmt":"2022-06-04T00:20:28","guid":{"rendered":"https:\/\/harchi90.com\/frontier-spirit-add-reverse-termination-fee-to-merger-agreement\/"},"modified":"2022-06-04T00:20:28","modified_gmt":"2022-06-04T00:20:28","slug":"frontier-spirit-add-reverse-termination-fee-to-merger-agreement","status":"publish","type":"post","link":"https:\/\/harchi90.com\/frontier-spirit-add-reverse-termination-fee-to-merger-agreement\/","title":{"rendered":"Frontier & Spirit Add Reverse Termination Fee To Merger Agreement"},"content":{"rendered":"
There’s an interesting update when it comes to Frontier’s takeover of Spirit, especially as JetBlue is attempting a hostile takeover of Spirit\u2026<\/p>\n
Spirit and Frontier have made an amendment to their previously announced merger agreement. Under the new terms, which have been unanimously approved by the board of directors of both companies, Frontier would pay a reverse termination fee of $ 250 million (or $ 2.23 per share) to Spirt “in the unlikely event the combination is not consummated for antitrust reasons . “<\/p>\n
Here’s how Ted Christie, Spirit Airlines CEO, describes this development:<\/p>\n
\n\u201cSince announcing our transaction with Frontier, we have had extensive constructive conversations with our stockholders, who have expressed support for the strategic rationale of our combination but a desire for additional stockholder protections. After discussing this feedback with the Frontier Board and management team, we have agreed to amend the merger agreement. We look forward to closing the transaction and bringing more ultra-low fares to more people in more places. “<\/p>\n<\/blockquote>\n
Meanwhile Mac Gardener, Chairman of the Board of Spirit Airlines, said the following:<\/p>\n
\n\u201cThe combination of a higher reverse termination fee and a much greater likelihood to close in a Frontier merger provides substantially more regulatory protection for Spirit stockholders than the transaction proposed by JetBlue. We look forward to closing the transaction with Frontier and giving Spirit stockholders the opportunity to benefit from pandemic recovery and share in approximately $ 500 million in annual net synergies. “<\/p>\n<\/blockquote>\n