AirBaltic's Stake Sale to Lufthansa Group Pending Approval
Deal News | Feb 05, 2025 | CEE Legal Matters
Cobalt and Eversheds Sutherland Bitans have advised on a significant transaction involving AirBaltic and the Lufthansa Group. Under the terms of the agreement, Lufthansa Group will invest EUR 14 million to acquire a 10% minority stake in AirBaltic, contingent on regulatory approval. This convertible share will be issued at a subscription price, with the potential to convert into ordinary shares following an initial public offering (IPO). The investment guarantees Lufthansa a Supervisory Board seat upon closing. The stake could be further adjusted post-IPO based on market pricing, ensuring no less than a 5% ownership. The advisory teams from Cobalt and Eversheds Sutherland Bitans include notable legal professionals engaging in complex transaction negotiations. This transaction reflects strategic alignment in the aviation sector and highlights significant legal advisory involvement.
Sectors
- Aviation
- Legal Services
- Finance
Geography
- Latvia – AirBaltic is based in Latvia, and the Ministry of Transport of Latvia is involved in the agreement.
- Germany – Lufthansa Group, the investor, is a German airline holding corporation.
Industry
- Aviation – The article discusses a strategic investment in AirBaltic by Lufthansa Group, reflecting developments in the aviation sector.
- Legal Services – The legal advisory roles played by Cobalt, Dentons, and Eversheds Sutherland Bitans are critical to the transaction.
- Finance – Financial transactions and structuring are central to the investment and potential IPO of AirBaltic.
Financials
- EUR 14 million – Investment by Lufthansa Group for a 10% stake in AirBaltic.
- EUR 40 million – Previous issuance by AirBaltic as reported in 2024.
- EUR 340 million – Bond issuance by AirBaltic reported in 2024.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| AirBaltic | Target Company | Company | The Latvian airline seeking to sell a minority stake to Lufthansa. |
| Lufthansa Group | Bidding Company | Company | The German airline investing EUR 14 million for a 10% stake in AirBaltic. |
| Cobalt | Legal Advisor | Company | Advised AirBaltic on the transaction. |
| Dentons | Consultant | Company | Collaborated with Cobalt in advising AirBaltic. |
| Eversheds Sutherland Bitans | Legal Advisor | Company | Advised Lufthansa Group on the transaction. |
| Ministry of Transport of Latvia | Government Body | Government | Involved in the announcement of the agreement between AirBaltic and Lufthansa Group. |