Spirit Airlines , Inc. has announced that it has received an unsolicited proposal from JetBlue Airways to acquire all of the outstanding shares of Spirit's common stock in an all-cash transaction for $33.00 per share.
Consistent with its fiduciary duties , the Spirit Board of Directors will work with its financial and legal advisors to evaluate JetBlue's proposal and pursue the course of action it determines to be in the best interests of Spirit and its stockholders.
The Board will conduct this evaluation in accordance with the terms of the Company's merger agreement with Frontier and respond in due course. Spirit shareholders do not need to take any action at this time.
As announced on February 7, 2022, Spirit entered into a merger agreement with Frontier Group Holdings, Inc. ("Frontier") (NASDAQ: ULCC), parent company of Frontier Airlines, Inc., under which Spirit and Frontier would combine in a stock and cash transaction.
Under the terms of the merger agreement, Spirit equity holders would receive 1.9126 shares of Frontier plus $2.13 in cash for each existing Spirit share they own. The transaction is subject to customary closing conditions, including completion of the regulatory review process and approval by Spirit stockholders.
Barclays and Morgan Stanley & Co. LLC are serving as financial advisors to Spirit and Debevoise & Plimpton LLP is serving as legal advisor.
JetBlue's $3.6 billion all-cash offer for Spirit Airlines can derail the merger plan of Rivals 'Spirit' and 'Frontier', that was announced on 7th February to create the fifth-largest airline in the country.
Spirit shares spiked more than 22% to $26.92 on Tuesday end of business , after the Jetblue offered the $33 per share.
Earlier , on 17th March, the merger plan had hit a Roadblock , when Spirit Airlines shareholder 'Dionne Shuler' filed a suit against the 'attempt of shareholder voting' for the merger.
