LatAm will incorporate Multiplus and administer its own loyalty program

The partnership between the airline and the company loyalty Latam Multiplus will not be renewed and the company the loyalty program from the TAM can get out of the bag. The controller informed the Board of Directors wants to accomplish a unified public tender offer for acquisition of shares for cancellation as publicly-held company and delisting from the stock exchange. Simultaneously, the Latam announced intention to buy all of the common shares of Multiplus which its affiliates does not currently own and integrate the Multiplus to Latam Pass loyalty program from the LAN Chile. The purpose of the partnership is to be expected. Since may, financial market analysts began to put in doubt the renewal of the contract between the two, which expires in 2024. Among the reasons leading to bet at the end of the partnership are the relatively small relevance of Multiplus inside the Latam (11% of the market value of the Group), fiscal inefficiencies and the fact the Latam your own loyalty program have in Chile. An industry pioneer in the country, fidelity Multiplus began to be questioned for not being a program created by LAN Chile, which bought TAM in 2010, forming the Latam. The Group has another loyalty program in Chile, the Latam Pass and, according to analysts, a single brand would strengthen the service. In the future, Latam intends to administer your passenger loyalty program internally. In a statement, Latam reported that the acquisition of Multiplus and total integration with your network, with the Latam Pass, must create the fourth largest frequent flyer programme and fidelity in the world (measured by the amount of customers). Customer points of Multiplus and rescue benefits will remain intact, according to the company, and the business partners of the Multiplus can share the customer base. The price per share proposed for the OPA of the Multiplus is R $27.22, a premium of 11.6% on the closing Tuesday, 4, R $24.40. The OPA, whose application must still be registered with the Brazilian Securities Commission (CVM), aims at the total shares outstanding, today in 27.3%-to notice the other Latan 72.7% of the Multiplus. The addition operation around R $1.2 billion.