Lufthansa Group has agreed to invest €14 million in AirBaltic for a convertible share representing a 10 percent stake in the Latvia-based carrier, the companies announced Wednesday. Lufthansa also would take a seat on AirBaltic’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 IPO of AirBaltic, with the German-based company’s share to be not less than 5 percent, according to the companies.
The deal provides AirBaltic with additional funding and supports its growth plans, according to the carrier. The transaction comes after Lufthansa and AirBaltic recently extended their wet-lease agreement for another three years beyond its initial summer 2025 end date.
