Lufthansa said it also will issue a debtor warrant potentially worth up to €163 million, “depending on Austrian Airlines’ economic performance and the Lufthansa share outperforming its competitors.”
The German company then will make a €215 million bid for Austrian’s remaining shares at €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.”
The offer remains contingent upon the Austrian government assuming €500 million of AAG’s approximately €900 million debt, Lufthansa holding 75 per cent of all AAG shares at the conclusion of the unspecified acceptance period for the public takeover bid and European Commission approval.