EUROPE & CIS: Lufthansa clears first hurdle in Austrian acquisition
Lufthansa’s supervisory board approved, in early December, the acquisition of Austrian Airlines Group, starting with the purchase of state holding company OIAG’s 41.56 per cent share for â‚¬366,000 (US$463,000). Lufthansa said it also will issue a debtor warrant potentially worth up to â‚¬163 million, “depending on Austrian Airlines’ economic performance and the Lufthansa share outperforming […]
December 1, 2008
Lufthansa said it also will issue a debtor warrant potentially worth up to â‚¬163 million, “depending on Austrian Airlines’ economic performance and the Lufthansa share outperforming its competitors.”
The German company then will make a â‚¬215 million bid for Austrian’s remaining shares at â‚¬4.44 per share, subject to approval from Austrian competition authorities. The per-share price equals the average weighted market price over the past six months.
“Gaining the support of our supervisory board for the acquisition of Austrian Airlines is an important step which paves the way for OIAG, the government in Vienna and the European Commission to make their decisions following due consideration of the transaction,” Lufthansa CEO Wolfgang Mayrhuber said.
“Our bid is fair,” he added. “It takes the interests of all those concerned into account and shares the encumbrances and risks fairly. The consequences of the financial markets crisis and its effects on the real economy also have a major impact on the aviation industry. Structural changes increase the likelihood of Lufthansa and Austrian Airlines sharing a brighter future.”