Some strategic investor showed an interest for shares of Latvian national airBaltic airline before the potential initial public offer, as Minister of Transport Kaspars Briškens said at a press-conference after a meeting of the government on Tuesday, the 23rd of July. The minister did not mention the investor’s name.
According to Briškens, this is good news, because the investor could participate in airBaltic’s minority capital. Then it would be possible to move on to initial public offer.
The minister said that in this case this is about airBaltic’s shares owned by the state. On top of that, it is important to agree on the best possible conditions for both sides. “In our case – the best possible conditions for Latvia,” he said.
Briškens explained that the exact number of shares under negotiations is a secret. Nevertheless, talks are definitely focused on the minority shares.
“At the same time, we are looking at ways to move with the investor towards an initial public offer, which the investor will be able to use to increase its participation in the company,” said the minister.
As for Lithuania’s and Estonia’s public interest for airBaltic shares, the minister said there are no ongoing bilateral or trilateral negotiations with these partners. “In any case, the initial public offer will provide an option to all investors – public and private – to participate in this process and acquire shares,” said the minister.
The minister stressed that the investor’s interest for airBaltic is affirmation of trust in airBaltic’s business plan.
Latvian Prime Minister Evika Siliņa added that on Tuesday the government decided to continue airBaltic’s movement towards initial public offer, which could be prepared this year, adding that the strategic investor in question is a company knowledgeable about the aviation industry. Nevertheless, she mentioned the offer was received recently, adding that it is not possible to reveal the name of the investor for their own interests.
“This doesn’t mean the state could lose majority, but after these negotiations we decided the Ministry of Transport will be given the right to continue negotiations with this strategic investor to ensure the initial public offer procedure is successful,” said Siliņa.
In a previous interview, airBaltic CEO Martin Gauss told LETA that the soonest when the decision in regards to airBaltic initial public offer could be made is the second half of the year.
Gauss also said that decision-making in regards to the initial public offer will be granted the necessary time, because no one wants to make a decision then suffer a failure.
The airline has also hired STJ Advisor LLP and Superia Corporate Finance to assist in consulting the initial public offer.
As previously reported that airBaltic last year carried a total of 4.536 million passengers, which is 35.7% more than in 2022, and operated 44 100 flights, which is 18.3% more than a year ago.
The audited turnover of airBaltic last year was EUR 664.289 million, which is 33.2% more than in 2022, as well as the company made a profit of EUR 33.852 million, as opposed to a loss a year earlier.
The Latvian state owns 97.97% of airBaltic shares, while the financial investor Aircraft Leasing 1, owned by Danish businessman Lars Thuesen, owns – 2.03%.