FRANKFURT, Feb 17 (Reuters) - Air Berlin approved plans to raise its stake in former race car driver Niki Lauda's airline Niki to 49.9 percent from 24 percent, in a move to expand in Eastern Europe.
Air Berlin PLC, Germany's second-biggest airline after Lufthansa, said late on Wednesday it agreed with the Lauda foundation to indirectly acquire 25.9 percent of the shares of NIKI Luftfahrt GmbH, opening the door to a full takeover.
In connection with the increase of its shareholding, Air Berlin will grant the private Lauda foundation a 40.5 million euro loan, Air Berlin said.
The foundation has the option to repay the loan in three years with cash or through the the transfer to the remaining 50.1 percent of NIKI Luftfahrt shares.
Unicredit analyst Uwe Weinreich said he expected Air Berlin to eventually take over Niki entirely and build an eastern European hub for its business.
'The deal has the potential to enhance Air Berlin's value if the airline gets the economical control of Niki,' he said ahead of Air Berlin's announcement.
Austrian low-cost carrier NIKI was founded by Lauda in 2003.
Air Berlin bought its 24 percent stake in Niki in early 2004. Lauda, who has a commercial pilot's license and occasionally can be found behind the wheel of NIKI planes himself, owns the remaining 76 percent of the budget airline.
NIKI has 450 workers and was profitable every year from its inception in 2003 until 2008. It has not yet published 2009 earnings figures.
Analysts have said that they expect it would cost Air Berlin considerably less than 100 million euros to take over Niki completely, with an initial 24 percent stake costing about 10 million euros.
Vienna-based Niki will hold a press conference on Thursday.
(Reporting by Edward Taylor and Maria Sheahan) ($1=.7345 Euro) Keywords: AIRBERLIN/ (maria.sheahan@thomsonreuters.com; +49 69 7565 1286; Reuters Messaging: maria.sheahan.thomsonreuters.com@thomsonreuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Air Berlin PLC, Germany's second-biggest airline after Lufthansa, said late on Wednesday it agreed with the Lauda foundation to indirectly acquire 25.9 percent of the shares of NIKI Luftfahrt GmbH, opening the door to a full takeover.
In connection with the increase of its shareholding, Air Berlin will grant the private Lauda foundation a 40.5 million euro loan, Air Berlin said.
The foundation has the option to repay the loan in three years with cash or through the the transfer to the remaining 50.1 percent of NIKI Luftfahrt shares.
Unicredit analyst Uwe Weinreich said he expected Air Berlin to eventually take over Niki entirely and build an eastern European hub for its business.
'The deal has the potential to enhance Air Berlin's value if the airline gets the economical control of Niki,' he said ahead of Air Berlin's announcement.
Austrian low-cost carrier NIKI was founded by Lauda in 2003.
Air Berlin bought its 24 percent stake in Niki in early 2004. Lauda, who has a commercial pilot's license and occasionally can be found behind the wheel of NIKI planes himself, owns the remaining 76 percent of the budget airline.
NIKI has 450 workers and was profitable every year from its inception in 2003 until 2008. It has not yet published 2009 earnings figures.
Analysts have said that they expect it would cost Air Berlin considerably less than 100 million euros to take over Niki completely, with an initial 24 percent stake costing about 10 million euros.
Vienna-based Niki will hold a press conference on Thursday.
(Reporting by Edward Taylor and Maria Sheahan) ($1=.7345 Euro) Keywords: AIRBERLIN/ (maria.sheahan@thomsonreuters.com; +49 69 7565 1286; Reuters Messaging: maria.sheahan.thomsonreuters.com@thomsonreuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.