September 16, 2008
Lufthansa to Pick Up Strategic Equity Share in SN Airholding
Lufthansa and SN Airholding, the parent company of Brussels Airlines, have signed an agreement, which initially envisages the acquisition by Lufthansa of a strategic stake in SN Airholding and, in a second step, the full integration of Brussels Airlines into the Lufthansa Group.
The agreement still requires the approval of the regulatory authorities and the Lufthansa supervisory board, as well as the board of directors and shareholders of SN Airholding.
In a first step, Lufthansa is picking up a 45% stake in SN Airholding for E65 million through a capital increase. After securing the air traffic rights of Brussels Airlines, Lufthansa will then have an option of acquiring the remaining 55% from 2011.
The price for picking up the remaining 55% depends on performance-related factors so that the cost for complete acquisition of Brussels Airlines could amount to a maximum of E250 million.
Wolfgang Mayrhuber, chairman of Lufthansa, said: "With Brussels Airlines and Lufthansa, two airlines whose services ideally complement each other and which enjoy an excellent reputation well beyond their home markets, are joining forces. Together we can offer more destinations, optimized connections, mutual use of each other's frequent flier program's and extended lounge access, which will enhance the attractiveness of the portfolios of both airlines."