Air Berlin to buy Thomas Cook's Condor airline
Airline Air Berlin PLC said Thursday it wants to buy the charter carrier Condor, a part of travel operator Thomas Cook that is owned by Arcandor AG, in a share swap deal, but must overcome regulators.
By Agencies |
FRANKFURT: Airline Air Berlin PLC said Thursday it wants to buy the charter carrier Condor, a part of travel operator Thomas Cook that is owned by Arcandor AG, in a share swap deal, but must overcome regulators.
The Berlin-based carrier, which is No. 2 behind the country's biggest airline, Lufthansa AG, said it would engineer a share swap with Arcandor, formerly known as KarstadtQuelle, to take control of Condor Flugidenst GmbH.
Air Berlin said it would give Thomas Cook shares in the company that, based on market prices at the time, could be worth between euro380 million and euro475 million, or $531.05 million to US$663.81 million.
The deal drove shares of Air Berlin up more than 3 percent to euro13.39 ($18.71) while shares of Arcandor were up nearly half a per cent to euro21.46 ($29.99).
Under the terms of the deal, Air Berlin said it would acquire Thomas Cook's 75.1 per cent share in Condor, with plans to acquire the remaining 24.9 per cent from Thomas Cook, provided Thomas Cook can buy the stake from Lufthansa.
In turn, Thomas Cook will likely end up with a stake of 29.9 per cent in Air Berlin, the airline said.
However, the deal is subject to regulatory approval by the German government, and Lufthansa does not have to sell its stake in Condor to Thomas Cook.
Thomas Cook used to be a 50-50 joint venture between Cologne-based Lufthansa and Arcandor, but the retailer took it over completely in an euro800 million deal at the end of 2006. As part of that deal, Lufthansa boosted its stake in Condor from 10 per cent to nearly 25 per cent.
The Berlin-based carrier, which is No. 2 behind the country's biggest airline, Lufthansa AG, said it would engineer a share swap with Arcandor, formerly known as KarstadtQuelle, to take control of Condor Flugidenst GmbH.
Air Berlin said it would give Thomas Cook shares in the company that, based on market prices at the time, could be worth between euro380 million and euro475 million, or $531.05 million to US$663.81 million.
The deal drove shares of Air Berlin up more than 3 percent to euro13.39 ($18.71) while shares of Arcandor were up nearly half a per cent to euro21.46 ($29.99).
Under the terms of the deal, Air Berlin said it would acquire Thomas Cook's 75.1 per cent share in Condor, with plans to acquire the remaining 24.9 per cent from Thomas Cook, provided Thomas Cook can buy the stake from Lufthansa.
In turn, Thomas Cook will likely end up with a stake of 29.9 per cent in Air Berlin, the airline said.
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However, the deal is subject to regulatory approval by the German government, and Lufthansa does not have to sell its stake in Condor to Thomas Cook.
Thomas Cook used to be a 50-50 joint venture between Cologne-based Lufthansa and Arcandor, but the retailer took it over completely in an euro800 million deal at the end of 2006. As part of that deal, Lufthansa boosted its stake in Condor from 10 per cent to nearly 25 per cent.
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