(Reuters) - Lufthansa said on Wednesday it had agreed to receive a stake of 10% in Latvian airline airBaltic, as the German airline seeks to strengthen its international network. The stake will be
Lufthansa Acquires Stake in airBaltic to Boost European Reach
(Reuters) -Lufthansa has agreed to acquire a 10% stake in IPO-bound Latvian airline airBaltic, the German airline said on Wednesday, its latest move to expand its European presence.
The German flag carrier has recently brought a 41% stake in Italian state-owned airline ITA and Reuters reported on Tuesday that it is in separate talks to acquire a minority stake in Spain's Air Europa.
Wednesday's deal comes ahead of airBaltic's plans to list on bourses in early 2026. In September last year, Reuters had reported that Lufthansa is considering taking a stake in airBaltic ahead of its IPO.
The stake will be issued in the form of convertible shares currently at a subscription price of 14 million euros ($14.56 million), but the stake size may be subject to change depending on the pricing of airBaltic's IPO, Lufthansa said.
Lufthansa will also receive a seat in airBaltic's supervisory board, the German firm said.
AirBaltic said in a separate statement that the deal would provide it with additional funding to support its growth and expansion plans.
The transaction is planned to close during the second quarter of 2025, subject to antitrust review.
European airlines have struggled with supply chain delays, labour disruption, surging prices and limits to airspace in 2024, with many reporting weaker-than-expected financial results, putting pressure on sector valuations.
($1 = 0.9615 euros)
(Reporting by Rishabh Jaiswal and Kanjyik Ghosh in Bengaluru; Editing by Maju Samuel)
