Hawaiian Holdings, Inc. (NASDAQ: HA) witnessed a remarkable surge in its stock during regular trading hours on Monday, soaring by 192.59% and concluding at $14.22. This notable upswing was attributed to an analyst upgrade.
Deutsche Bank upgraded its recommendation for HA stock from a HOLD to BUY and also raised the price target from $4 to $16. It also followed a breaking news of an acquisition involving Hawaiian Airlines.
In a strategic move, Hawaiian (HA) and Alaska Air Group declared the formalization of a definitive acquisition agreement. The agreement provides for Alaska Airlines to acquire Hawaiian Airlines for $18.00 a share in cash, resulting in a total transaction value of approximately $1.9 billion. Also included in the agreement is the assumption of $0.9 billion in Hawaiian Airlines’ net debt.
The amalgamation of these two carriers is poised to unlock an expanded array of destinations for consumers, augmenting the spectrum of crucial air service options across the Pacific region, Continental United States, and globally. This transaction is anticipated to fortify a more robust foundation for growth and competition within the U.S., providing enduring employment prospects, sustained investment in local communities, and a commitment to environmental stewardship.
As carriers deeply rooted in the 49th and 50th U.S. states, both Alaska Airlines and Hawaiian Airlines share a profound dedication to the welfare of their employees, guests, and communities. This amalgamation seeks to build upon the rich legacies and cultures of these two service-oriented airlines, preserving both cherished brands on a unified operational platform.
Honolulu is slated to emerge as a pivotal hub for Alaska Airlines, facilitating heightened international connectivity for West Coast travelers, particularly to the Asia-Pacific region, with seamless one-stop service through Hawai’i.
The proposed all-cash transaction, valued at $18.00 per share and totaling $1.0 billion in equity, represents a compelling premium for shareholders of Hawaiian Airlines. The consolidated entity will be headquartered in Seattle, helmed by Alaska Airlines CEO Ben Minicucci. A specialized leadership team will be established to spearhead integration planning.
