In­vestors could soon start a due dili­gence re­view in airBaltic

Baltic News Network - - Front Page -

Mul­ti­ple po­ten­tial in­vestors could start a due dili­gence re­view in Lat­vian na­tional air­line airBaltic, says Lat­vian Trans­port Min­is­ter Uldis Augulis.

He says the Cabi­net of Min­is­ters was in­formed on Tues­day, 18 July, about the progress with at­trac­tion of a new strate­gic in­vestor for the air­line. In to­tal, more than 40 po­ten­tial in­vestors from all over the worlds have been reached out to. The process is planned to be fin­ished this year.

Ac­cord­ing to him, talks con­tinue with many po­ten­tial in­vestors, some of them plan to com­mence a due dili­gence re­view at the air­line.

When asked if there is a po­ten­tial in­vestor from Rus­sia, Augulis said no.

At the same time, he con­firmed that the coun­try still wishes to re­tain 50% plus one share in the com­pany. It is also planned to keep Riga In­ter­na­tional Air­port as airBaltic’s main base.

Martin Gauss, CEO of airBaltic, says the process is go­ing well and on sched­ule.

He also said the air­line could re­al­ize its fleet mod­ern­iza­tion plans with­out an in­vestor. Gauss also says the air­line also has plans to re­place its cur­rently used tur­bo­prop air­craft.

As it is known, airBaltic’s busi­ness plan Hori­zon 2021 in­cludes at­trac­tion of ad­di­tional cap­i­tal worth EUR 50 mil­lion to se­cure fund­ing for the re­place­ment of its cur­rent fleet and con­tinue im­prov­ing the air­line’s cap­i­tal struc­ture. The air­line states it has no plans to turn to the state for fund­ing.

Lat­vian gov­ern­ment has made it a pri­or­ity to find a strate­gic in­vestor for airBaltic be­fore the end of 2017.

Last year, airBaltic fin­ished in­creas­ing is base cap­i­tal to EUR 256.47 mil­lion. In ac­cor­dance with the agree­ment signed be­tween the Lat­vian state and Ger­man in­vestor Ralf Di­eter Mon­tag-Girmes, the in­vestor in­vested ap­prox­i­mately EUR 52 mil­lion into the air­line at the end of March 2016. The state in­vested EUR 80 mil­lion with airBaltic cap­i­tal­iz­ing the loan from the State Trea­sury.

Ieva Čīka/LETA

Newspapers in English

Newspapers from Latvia

© PressReader. All rights reserved.