Talks for acquisition of Cargolux continues

Talks are taking place with four potential candidates on the acquisition of the 35 per cent shareholding in Cargolux formerly held by Qatar Airways.

Cargolux Richard Forson

The Luxembourg state has held the stake on a temporary basis since the end of last year, purchasing it at the original sale price of US$117.5 million paid by Qatar Airways.

According to European media reports, a spokesperson for Luxembourg’s Transport ministry confirmed to that a negotiating team, made up of representatives from government, Cargolux’s management, a law firm and an investment bank, was “continuing its discussions with four interested parties from Russia, China and the US.”

However, the spokesperson declined to comment on the identity of the parties or whether they were airline or investment groups or a mixture of both.

“We expect the negotiations to be finalised by the end of 2013 at the latest,” the spokesperson added. “Once this is achieved, details can be made public.”

In a recent media report, Cargolux’s interim CEO, Richard Forson, said on the subject of finding a new investor for the cargo airline: “There will be a near-term resolution.”

The same report also highlighted disgruntlement among staff unions who have demanded more information on the discussions over the stake only to be told by the government that these remain confidential until an agreement is signed.