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Wednesday, 29.11.2023, 06:52
Several potential investors likely to begin due diligence for airBaltic soon

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The minister said that the Cabinet of Ministers was informed about progress
on attracting a strategic investor for airBaltic.
The company has so far been offered to more than 40 potential investors from
various countries and the plan is to complete the process by the end of this
year.
Augulis said that talks are ongoing with many potential investors, several
of whom might start due diligence soon.
None of the potential investors are from Russia, the minister said.
In Augulis’ words, the government still wants to keep more than 50% of airBaltic shares and the airline’s
would-be investor is also expected to not reduce the carrier’s route network
and to maintain Riga Airport as the airline’s home base.
Listing of airBaltic on the stock
exchange is not being considered at the moment, Augulis said.
airBaltic CEO Martin Gauss said that so far
everything has been going successfully and according to the schedule.
He also said that the airline could carry through with its fleet upgrade
plan also without attracting an investor. Gauss noted that the company has not
only purchased new CS300 aircraft but is also planning to replace its existing
turboprop planes.
As reported, Horizon 2021, the business plan of Latvian national carrier airBaltic, provides for attraction of
additional capital worth EUR 50 million, but the airline will not request
further investments from the state.
The Latvian government has resolved to find a strategic investor by the end
of 2017. International financial consultancy Lazard Freres has been hired to
look for the investor.
In May last year, airBaltic share
capital was increased to EUR 256.473 million. According to an agreement signed
by the Latvian government and German investor Ralf Montag Girmes, the investor made an investment worth EUR 52
million in airBaltic, while the state
invested EUR 80 million, capitalizing the loan from the Treasury. As a result,
the Latvian state held 80% shares in airBaltic
and Montag Girmes had 20% through company Aircraft
Leasing 1.
In April this year, Danish businessman Lars
Thuesen became the sole owner of Aircraft
Leasing 1, thus becoming an indirect holder of a 20% stake in airBaltic.
airBaltic posted EUR 1.2
million in profit last year and achieved EUR 286 million in turnover.
airBaltic serves around 60
destinations from its home base in Riga, Latvia.