Mexico's Volaris approves merger with Viva Aerobus

About this update from Controladora Vuela Compania De Aviacion Sab De Cv Class A

Mexican budget airline Volaris BMV:VOLAR/A said on Thursday that shareholders approved its merger with rival Viva Aerobus.The all-stock transaction will see Volaris emerge as the surviving entity while Viva Aerobus ceases to exist, according to a filing with Mexico's stock exchange. Volaris will issue new shares representing 50% of the combined company on a fully diluted basis to Viva shareholders.DEAL DETAILS• Reuters exclusively reported the merger in December before the two carriers confirmed.• Volaris will increase capital by up to $248.3 million through new share issuance.• The merger remains subject to regulatory approvals in Mexico, the United States and Colombia.• The merger requires the companies to maintain pre-merger business activities for at least one year to avoid tax implications under Mexican law.

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