JetBlue Offers To Buy Spirit For $33 A Share

(RTTNews) - JetBlue (JBLU) on Tuesday confirmed that it has submitted a proposal to the Board of Directors of Spirit (SAVE) to acquire Spirit for $33 per share in cash, implying a fully diluted equity value of $3.6 billion.

The proposal represents a premium of 52% to Spirit's undisturbed share price on February 4, 20221, and a premium of 50% to Spirit's closing share price on April 4, 2022. A 37% premium to the value implied by the Frontier transaction as of April 4, 2022

JetBlue said it firmly believes its proposal constitutes a "superior proposal" under Spirit's merger agreement with Frontier and represents the most attractive opportunity for Spirit's shareholders.

In February, Spirit Airlines reached a merger deal with Frontier Airlines. According to the deal, Spirit share holders will receive 1.9126 shares of Frontier plus $2.13 in cash for each existing Spirit share they own. This implies a value of $25.83 per Spirit share. Upon closing, existing Frontier equity holders will own about 51.5%, while Spirit equity holders will own around 48.5% of the combined airline.