
An agreement has been reached with Lufthansa as a new investor in AirBaltic and a contract has been signed, Prime Minister Evika Silinia announced on the X social network.Under the conditions of the contract, the company will continue to be based in Riga, and air traffic will not be reduced. The state still owns the majority shareholding of airBaltic. As Delfi reported to airBaltic, the agreement provides for Lufthansa Group to invest 14 million euros in a minority
package of airBaltic shares. The investor will also receive a seat on the council of the airline. In exchange for the investment Lufthansa Group will receive a convertible
share, giving it a 10 percent share. It will be issued at the price of subscription in the amount of 14 million euros. This convertible share will subsequently be converted into common shares after a potential primary public placement (IPO) of airBaltic shares. After IPO the size of Lufthansa Group will be determined by the market price of the potential IPO. The Investment deal also provides that Lufthansa Group will hold at least 5% of airBaltic’s equity after the potential IPO.
The deal is a continuation of the existing strategic partnership between Lufthansa Group and airBaltic, explains airBaltic. After completion of the investment deal Lufthansa Group will also appoint one of the members of the Board of the airline. The deal is expected to be completed
inthesecondquarterof2025year,conditionalonthereviewbythecompetitionagencies.