German aviation group Lufthansa Group will become a strategic investor in Latvia’s national air carrier, airBaltic, LSM reports. Under the deal, Lufthansa will acquire 10% of shares in airBaltic for EUR 14mn. The group plans to close the deal in the second quarter of 2025, subject to regulatory approval. The shares will be converted into ordinary shares upon airBaltic’s planned IPO. After the IPO, Lufthansa’s stake in airBaltic will be no less than 5% of shares. The Latvian state will retain at least 25% ownership. Latvian Transport Minister Kaspars Briskens insisted that airBaltic’s estimated value of EUR 140mn was fair, given the company’s large debts, LSM reported. He suggested that the IPO could raise airBaltic’s value to EUR 309mn.
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