A strategic investor has shown interest in the shares of Latvia’s national carrier airBaltic before the company’s potential initial public offering (IPO), Transport Minister Kaspars Briskens (Progressives) said Tuesday at a news conference without naming the investor.
In Briskens’ words, this is good news because the investor could buy a minority stake in airBaltic, and then it would be possible to go ahead with the IPO together.
The minister indicated that in this case he is only talking about state-owned airBaltic shares, and it is important to agree on the most favorable terms for both parties. “In our case – the most favorable conditions for the Latvian side,” said the minister.
Briskens said that he could not disclose the exact amount of shares being negotiated at the moment, but that it was definitely a minority stake. “At the same time, we are considering the possibility of going ahead with the IPO together with this investor, who could then potentially take the opportunity to increase their stake in the company,” the minister said.
As regards the interest expressed by Lithuania and Estonia in airBaltic shares, the transport minister noted that no bilateral or trilateral negotiations with these partners were currently taking place. “In any case, the IPO gives an opportunity to any investor, both public and private, investment funds and others, to get involved in this process and buy shares,” the minister said.
Briskens noted that the investor’s interest in airBaltic is an indication of confidence in the airline’s business plan.
Prime Minister Evika Siliņa (New Unity) added that the government decided on Tuesday to proceed with the airBaltic IPO, which could be prepared later this year, and that the strategic investor is a company with knowledge of the aviation sector, but she noted that the offer was received recently and that it is not possible to disclose the name of the investor publicly due to their own interests.
“This would not mean that the state would not retain a majority stake, but after these negotiations we decided to authorize the Transport Ministry to continue the negotiations with this strategic investor to ensure a successful IPO process,” Silina added.
Previously, airBaltic CEO Martin Gauss told LETA that the decision on listing airBaltic shares could be taken in the second half of this year at the earliest.
Gauss also said that time will be taken to decide on the IPO, because nobody wants to take a rushed decision and then suffer a failure.
It as also been reported that airBaltic has hired STJ Avisors LLP and Superia Corporate Finance to advise on the planned IPO.
Last year, airBaltic’s audited turnover was EUR 664.289 million, up 33.2 percent on 2022, and the company made a profit of EUR 33.852 million, compared to a loss of EUR 33.852 million the year before.
The Latvian state owns 97.97 percent of airBaltic’s shares, while the financial investor, Danish businessman Lars Thuesen’s Aircraft Leasing 1, owns 2.03 percent.
Source: BNS
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