Allegiant Travel Company (NasdaqGS:ALGT) M&A announcement January 12, 2026 08:30 AM ET Company ParticipantsRobert Neal - Senior Vice President and CFOSherry Wilson - Head of Investor RelationsConor Cunningham - Managing DirectorDuane Pfennigwerth - Senior Managing DirectorGreg Anderson - CEOJude Bricker - CEODrew Wells - CCOConference Call ParticipantsAtul Maheshwari - Senior AnalystMichael Linenberg - Managing Director and Senior Airline AnalystRavi Shanker - Managing Director and Senior Equity Research An ...

Group 1 - Allegiant Travel Company (ALGT.US) announced the acquisition of Sun Country Airlines (SNCY.US) for approximately $1.5 billion, including $400 million in debt [1] - The acquisition will provide Sun Country shareholders with $4.10 in cash and 0.1557 shares of Allegiant stock, resulting in an implied purchase price of $18.89 per share, a 20% premium over the previous closing price [1] - Following the announcement, Sun Country Airlines' stock rose by 14% in pre-market trading, while Allegiant's stock fell over 4% [1] Group 2 - The merged airline will operate under the Allegiant brand with a fleet of nearly 200 aircraft and will be headquartered in Las Vegas [2] - The merger is based on the complementary nature of both companies' operations, combining Allegiant's presence in smaller markets with Sun Country's focus on larger cities, resulting in over 650 routes including 18 international destinations [2] - The new entity is expected to achieve revenue and cost synergies through scale effects, fleet optimization, and procurement collaboration [2] Group 3 - Jefferies analyst Sheila Kahyaoglu noted that the merger will make the new company the ninth largest domestic airline in the U.S. by capacity, with a market share of approximately 2.6%, still below major competitors like American Airlines (AAL.US) and Delta Airlines (DAL.US) [2] - The merger is seen as a sign of consolidation returning to the U.S. airline industry, which is expected to be a significant theme for investors in 2026 and beyond [2] Group 4 - Bank of America analyst Andrew Didora stated that the transaction is overall positive for the industry as it may reduce interest from potential bidders for Spirit Airlines' assets, increasing the likelihood of capacity exiting the market if Spirit Airlines cannot emerge from bankruptcy [3] - The analyst emphasized that consolidation is beneficial, particularly for a sector that has struggled with growth and profit margin improvement [3]

Group 1 - The core point of the news is the acquisition of Sun Country Airlines by Allegiant Travel, valued at approximately $1.5 billion, including $400 million in debt, with an implied purchase price of $18.89 per share, representing a 20% premium over the last closing price [1] - The merged airline will operate under the Allegiant brand with a fleet size close to 200 aircraft and will be headquartered in Las Vegas, combining Allegiant's presence in smaller markets with Sun Country's operations in larger cities [2] - The merger is expected to create synergies in revenue and cost through scale effects, fleet optimization, and procurement collaboration, with the new entity projected to become the ninth largest domestic airline in the U.S. with a market share of approximately 2.6% [2] Group 2 - Analysts view the merger positively for the industry, as it may reduce interest from potential bidders in Spirit Airlines' assets, potentially leading to further capacity exit in the market if Spirit Airlines cannot emerge from bankruptcy [3] - The integration is seen as beneficial for a sector that has struggled with growth and profit margin improvement over the long term [3]

#005595 #FFD105 #394B5D #38AC49 #FD8103 #394B5D Transaction Announcement January 12, 2026 #FD8103 Cautionary Statement Regarding Forward-Looking Statements This communication contains forward-looking statements under the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934, Section 27A of the Securities Act of 1933 and the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical facts and often can be identified by th ...

Federal Reserve Investigation - A criminal investigation has been launched into Federal Reserve Chair Jerome Powell regarding the renovation of the Fed's Washington headquarters and potential false statements made to Congress about the project's scope [2][3] - The investigation, approved by Jeanine Pirro, includes analysis of Powell's public statements and spending records [3] - The renovations, which began in 2022, are estimated to be approximately $700 million over budget, with the project involving the expansion and modernization of buildings that have not been comprehensively renovated since their construction nearly 100 years ago [5] Allegiant Travel Acquisition - Allegiant Travel Co. has agreed to acquire Sun Country Airlines in a cash-and-stock deal valued at approximately $1.5 billion, including net debt [8] - Under the terms of the agreement, Sun Country shareholders will receive 0.1557 shares of Allegiant common stock and $4.10 in cash for each share, implying a total value of $18.89 per share, representing a 19.8% premium to Sun Country's closing price of $15.77 [8] Meta's Compliance with Age Restrictions - Meta has removed over 550,000 accounts of Australian children from its platforms to comply with a social media ban for users under 16 [9][10] - The removal included 330,000 users from Instagram, 173,000 from Facebook, and 39,000 from Threads, following the enforcement of the ban on December 10, 2025 [10] - Meta has indicated that early data suggests the ban is not effectively improving teen safety or wellbeing, citing inconsistent age-verification measures across platforms [11]

Core Viewpoint - Allegiant Travel Co. is acquiring Sun Country Airlines Holdings Inc. in a $1.5 billion cash-and-stock deal, indicating ongoing consolidation in the US airline industry amid rising competition [1]. Group 1: Transaction Details - Sun Country shareholders will receive 0.1557 shares of Allegiant common stock and $4.10 in cash per share, representing a 20% premium over Sun Country's closing price prior to the announcement [2]. - Following the announcement, Sun Country's shares increased by as much as 18% to $18.54 in premarket trading, while Allegiant's shares remained relatively stable [2]. Group 2: Strategic Implications - The merger will create a combined entity with over 650 routes, including 18 international destinations across Mexico, Canada, the Caribbean, and Central America, leveraging Allegiant's presence in smaller markets and Sun Country's focus on larger cities with minimal overlap [3]. - Both airlines primarily target price-sensitive US vacationers, and the merger aims to enhance their competitive position against larger carriers like United Airlines and Delta Air Lines [4]. Group 3: Industry Context - The deal unites the ninth- and twelfth-largest airlines in the US, following Alaska Air Group's merger with Hawaiian Airlines, suggesting a trend of consolidation among smaller carriers seeking to compete more effectively [6]. - Other potential mergers are on the horizon, as Frontier Group Holdings is pursuing a merger with Spirit Aviation Holdings, which has faced significant challenges, including a recent bankruptcy [6].

根据公布的交易条款，忠实航空将以每股4.10美元现金加上0.1557股忠实航空普通股的方式，换取每股 太阳城航空股票。该项交易总作价较太阳城航空在2026年1月9日(即上周最后一个交易日)的收盘价溢价 约19.8%。 据了解，Sun Country 成立于 1982 年，客户群以低收入和中等收入家庭为主，这些旅客对经济形势变化 较为敏感。这家总部位于明尼阿波利斯的廉价航空公司经营客运、货运及包机业务。 智通财经APP获悉，忠诚旅游(ALGT.US)将以现金加股票的方式收购Sun Country Airlines(SNCY.US)，两 家公司在上周日发布的联合声明中表示，交易总价值为 15 亿美元，已计入 Sun Country 的债务。 忠实航空将承担太阳城航空约4亿美元的净债务，使总交易价值达到15亿美元。合并完成后，忠实航空 现有股东将持有新实体约67%的股份，太阳城航空股东则持有余下约33%的权益。双方董事会已一致批 准该项协议。 此次合并的核心逻辑在于双方业务的高度互补性。合并后的新实体将运营逾 650 条航线，包括飞往墨西 哥、加拿大、加勒比地区及中美洲的 18 个国际目的地，并把忠诚旅游在中小市场 ...

Market Overview - US stock futures declined, with Dow Jones Industrial Average futures down 0.7%, S&P 500 futures down 0.6%, and Nasdaq 100 futures down approximately 0.9% amid concerns over Federal Reserve independence following a criminal investigation into Chair Jerome Powell [1][2] - The dollar fell by 0.3%, marking its largest drop in nearly three weeks, as the Federal Reserve faced grand jury subpoenas from the Justice Department [17][18] Federal Reserve and Political Pressure - Powell stated that the Justice Department's subpoena is an escalation of President Trump's campaign to pressure the Fed into cutting interest rates, emphasizing that the Fed sets rates based on public service rather than presidential preferences [2][3] - Concerns over political interference in monetary policy have intensified, contributing to a rise in gold prices and a decline in the dollar [4] Upcoming Economic Data - Investors are preparing for updates on inflation, with consumer inflation data due on Tuesday, and producer prices and retail sales scheduled for Wednesday [5][8] - The market is largely pricing in no rate cut from the Fed this month, following a December jobs report indicating a cooling labor market without a sharp economic slowdown [5] Corporate Earnings and Market Reactions - Major banks are set to report earnings this week, with expectations of a record year for the industry and a projected 8.3% annual profit growth for S&P 500 firms [9][10] - Capital One shares fell 10% after Trump warned credit card issuers they would be in violation of the law if they did not cap interest rates at 10% [7][14] Geopolitical Developments - Markets are also monitoring unrest in Iran and potential military action from the US, which has led to fluctuations in oil prices as investors assess the impact on crude supply [6]

Core Viewpoint - Halper Sadeh LLC is investigating the fairness of the merger between Allegiant Travel Company and Sun Country Airlines for Allegiant shareholders, as they will own approximately 67% of the combined entity upon completion of the transaction [1]. Group 1: Investigation Details - The investigation focuses on whether Allegiant and its board violated federal securities laws or breached fiduciary duties by not securing the best possible consideration for shareholders and failing to disclose all material information necessary for assessing the merger [3]. - Halper Sadeh LLC may seek increased consideration for Allegiant shareholders, additional disclosures, and other forms of relief related to the proposed transaction [4]. Group 2: Legal Rights and Options - Allegiant shareholders are encouraged to learn more about their legal rights and options regarding the merger through Halper Sadeh LLC [2].

Group 1 - Allegiant will acquire Sun Country Airlines in a deal valued at approximately $1.5 billion, including debt, with Sun Country shareholders receiving 0.1557 Allegiant shares and $4.10 in cash for each share, valuing the stock at $18.89, a premium of about 19.8% to its previous close of $15.77 [1][2] - The acquisition will expand the combined company's network, adding more destinations across the US and international markets, with a fleet of about 195 aircraft [2][3] - The combined company is expected to generate $140 million in annual synergies by the third year after closing, and the transaction will be accretive to earnings per share in the first year [2] Group 2 - Upon closing, Allegiant and Sun Country shareholders will own approximately 67% and 33% of the combined company, respectively [4] - Allegiant CEO Gregory Anderson will lead the combined company as CEO, while Robert Neal will serve as president and CFO, and Sun Country CEO Jude Bricker will join the board of directors [4] - The deal is anticipated to close in the second half of 2026 [2][5]