Mexico's Volaris approves merger with Viva Aerobus

MEXICO CITY, March 26 (Reuters) - Mexican budget airline Volaris VOLARA.MX 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.