Lufthansa Group has agreed to invest 14 million euros in Air Baltic for a convertible share representing a 10% stake in the Latvia-based carrier. Lufthansa also would take a seat on Air Baltic's supervisory board.
The deal is expected to close during the second quarter, subject to antitrust review.
Lufthansa's convertible share will be changed into ordinary shares upon a potential Air Baltic IPO, with Lufthansa's share to be not less than 5%, according to the companies.
The deal provides Air Baltic with additional funding and supports its growth plans, according to the carrier. The transaction comes after Lufthansa and Air Baltic recently extended their wet-lease agreement for another three years beyond its initial summer 2025 end date.
Air Baltic flies a fleet of Airbus A220-300s to 70-plus destinations in Europe and the Middle East.
Source: Business Travel News