Amazon has taken a minority stake in the Air Transport Services Group, an air transportation partner that operates a significant share of the company’s fast-growing aviation logistics unit.
Amazon has exercised mandates in the ASTG that will allow it to acquire approximately 13.5 million shares in the airline at an exercise price of $ 9.73 per share, or more than $ 131.9 million, he said. ASTG in an SEC filing Monday. As part of a separate agreement, Amazon also acquired approximately 865,000 ASTG shares, with no cash exchange, the file states.
Shares of ATSG rose Monday by more than 4.9% in early afternoon trading. Amazon’s shares were largely stagnant.
Amazon has had guarantees in ATSG since 2016. It was mandated under a lease agreement for 20 Boeing 767s from ATSG, one of its first offers with a cargo company to build its growing air fleet. Amazon also holds mandates to buy a minority stake in rival carrier Atlas Air Worldwide Holdings.
Amazon Air Fleet, launched in 2016, is an essential part of its effort to deliver in one and two days. The company is still relying on ASTG and Atlas Air to fly much of its packages, but has begun bringing in some airline operations inside, giving more credence to the belief that Amazon Air could one day rival with FedEx and UPS.
In a company premiere, Amazon bought 11 used Boeing 767-300s from Delta and WestJet in January. Later this year, the company will lift the veil on its $ 1.5 billion air hub in northern Kentucky, which has a capacity of 100 Amazon aircraft and is expected to perform about 200 flights a day.