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Prudentia: worth of airBaltic to rise to EUR 260 mln after airline receives investments

BC, Riga, 05.02.2016.Print version
After the national airline airBaltic receives German investor Ralf-Dieter Montag-Girmes and government's investments, its value will be around EUR 260 million, regardless of the airline's negative equity at the moment, Prudentia's CEO Karlis Krastins told LETA.

BC's photo.

The fresh investments will ensure a breakthrough in the development of airBaltic, added Krastins. He also said that Montag-Girmes would acquire minority interest in the airline – 20 percent, therefore the interests of airBaltic and the government would not be affected in any way.

 

How much airBaltic is worth when a strategic investor is found for the airline will depend on talks with investors, implementation of airBaltic's business plan, and market situation. If the business plan of airBaltic is implemented successfully, it will create all the necessary preconditions for further growth of the airline.

 

Krastins also said he was pleased at the signing of the investment agreements between airBaltic, Montag-Girmes and the government. "I believe it will be one of the largest acquisition deals in the Baltics in 2016," said the expert.

 

As reported, airBaltic shareholder agreement was signed between the government and Montag-Girmes today.

 

Under the deal, a total of EUR 132 million of fresh capital will be invested in the Latvian carrier for fleet modernization and its new Horizon 2021 business plan.






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