Indigo Partners may invest up to $75 million in WOW Air

Indigo Partners, the US-based private equity firm that specializes in ultra-LCCs, is looking to invest up to $75m in Icelandic carrier WOW Air. The US company, which emerged in late November as a potential investor in WOW Air after an acquisition attempt by Icelandair collapsed, has been in negotiations with airline executives over its possible future involvement as a major shareholder. WOW said, “Following successful completion of due diligence, the parties will work to close the investment as soon as practicable whereby Indigo Partners will acquire some of the shares in WOW … pursuant to a Share Purchase Agreement.” The agreement would be between a special purpose vehicle “formed and controlled by Indigo Partners (the ‘Indigo Investor’) and other shareholders of WOW. Additionally, the Indigo Investor contemplates issuing a new super senior convertible loan to WOW to fund the recovery of its business. In the aggregate, Indigo’s investment, assuming successful diligence, structuring and documentation would be for an amount up to $75 million.”<br/>