Lufthansa takes on ITA — June 2023
Lufthansa announced at the end of May that it had finally reached agreement with the Italian Government to acquire Italia Trasporto Aero SpA (ITA Airways), the successor to Alitalia.
Under the terms of the agreement it will acquire a 41% stake by investing €325m in cash for new equity in the company, the Italian government injecting a further €250m. Lufthansa has the right to take full ownership depending on a certain pre-defined pricing mechanism relating to the operating profitability and net debt performance of ITA Airways. Italy also has the right to force Lufthansa to buy its remaining stake if ITA delivers or exceeds performance ltargets aid out in a jointly-agreed business plan. Neither put option dates, details of pricing nor business plan were disclosed. The deal is expected to close by the end of 2023 and is subject to regulatory approval from Brussels.……