euro adhoc: Air Berlin PLC
Mergers - Acquisitions - Takeovers
Air Berlin
agreed to acquire 100 % of LTU
New code share partner Condor will replace TUIfly
Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.
Acquisition
27.03.2007
London, 27 March. Air Berlin Plc announces the acquisition of 100 % of LTU. On 26 March 2007, the agreement relating to acquisition of the participation in LTU was notarised. The purchase price for the 100% participation in LTU is EUR 140 million; by this acquisition, Air Berlin assumes between EUR 190 and 200 million of net financial debt of LTU. The agreement is subject to the approval of the German Federal Cartel Office. The acquisition will be financed in the near future through the issuance of new shares and convertible bonds in an expected total amount of approximately EUR 250 million. The issue of shares will be for up to 10 % of the existing share capital, the larger portion of the financing will be in the form of convertible bonds. In addition to funding part of the purchase price, the proceeds from this financing will be used for the refinancing of approximately EUR 100 million of LTUs debt and approximately EUR 50 million of Air Berlins debt. The combination of Air Berlin's and LTU's business is expected to produce annual synergies of EUR 70-100 million. LTU will remain a legally independent company within the Air Berlin group, with its own management. The LTU name will also be retained in the foreseeable future. However, there will be a seamless integration of LTUs routes into Air Berlins network in the European market. Through this acquisition, Air Berlin is continuing its growth strategy. Air Berlin also changes its code share partner with the beginning of the summer flight plan 2007/2008; Condor will replace TUIfly. In addition, Air Berlin intends to acquire a 49 percent stake in the Swiss airline company, Belair Airlines AG. Belair is a subsidiary of the Hotelplan Group which, in turn, is fully-owned by the Migros Group. Belair currently operates a fleet of three airplanes.
end of announcement euro adhoc 27.03.2007 06:56:07
Further inquiry note:
Ingolf Hegner
Head of Investor Relations
+49 (0)30 3434 1532
ihegner@airberlin.com
Branche: Air Transport
ISIN: GB00B128C026
WKN: AB1000
Index: Classic All Share, Prime All Share, SDAX
Börsen: Frankfurter Wertpapierbörse / official dealing/prime standard
Börse Berlin-Bremen / free trade
Hamburger Wertpapierbörse / free trade
Baden-Württembergische Wertpapierbörse / free trade
Börse Düsseldorf / free trade
Bayerische Börse / free trade
Original content of: Air Berlin PLC, transmitted by news aktuell