Mayrhuber on Austrian: 'We are here to make money'

Source : ATW daily

"Austrian state holding company OIAG's supervisory board approved the sale of its 41.56% stake in Austrian Airlines Group to Lufthansa for €366,268.75 ($464,865) on Friday, continuing the German airline's aggressive European shopping spree. Lufthansa approved the transaction the day before and will receive a €500 million paymen next week to cover a portion of AAG debt in exchange for a debtor warrant worth up to €162 million that will depend on Austrian's "economic development" and LH's share price relative to competitors after three years, the companies confirmed (ATWOnline, Dec. 4). Next spring, LH will submit a takeover offer to all AAG remaining shareholders of €4.44 per share. OIAG CEO Peter Michaelis called the sale "the right decision" that will "consolidate" Austrian's status "as a leading carrier in Central and Eastern Europe" while allowing it to "remain a legally independent company" with its own brand, crew, fleet and Austrian identity. "Only by combining our powers can we hope to find an answer to the global challenges currently facing our industry," LH Chairman and CEO Wolfgang Mayrhuber said, calling the AAG acquisition "another step along this path." LH said it expects approximately €80 million in annual synergies to result from the merger and that Austrian will return to profit in around three years." Next.