Supervisory Board approves equity investment

The Supervisory Board of the Lufthansa Group has approved an agreement on a strategic investment in SN Airholding SA/NV, the parent company of Brussels Airlines. According to the agreement, Lufthansa will acquire a 45 per cent stake in SN Airholding SA/NV for a price of 65 million Euros in the first phase. As of 2011, and following the securing of the air traffic rights of Brussels Airlines, Lufthansa will also be able to exercise an option to acquire the remaining 55 per cent in the second phase. Furthermore, the parties have agreed that Brussels Airlines shall be fully integrated into the Lufthansa Group as soon as Lufthansa has acquired the full 100 per cent stake.

Lufthansa CEO and Chairman, Wolfgang Mayrhuber, and SN Airholding Chairman, Etienne Davignon, signed the agreement in mid-September. The agreement has yet to be approved by the competition authorities and the Board of Directors and shareholders of SN Airholding SA/NV.

Source: Transportweekly