Lufthansa To Acquire 40% Of ITA Airways , Expected Signing Of Agreement Tomorrow.

It's happening finally , Lufthansa is going to be the Shareholder in the Italian carrier Italia Trasporto Aereo , that was carved out of Alitalia - Società Aerea Italiana S.p.A , and the signing of the agreement on Ita Airways between Ministry of Economy and Finance (Ministero dell'economia e delle finanze) and Lufthansa is expected for tomorrow, which includes three distinct phases. 

• Lufthansa will acquire only 40 percent (thanks to a reserved capital increase). 
• The goal is to obtain 90% of the shares within two years , as foreseen by a mechanism of options. 
• Relations between the two shareholders (Lufthansa to hold 40 percent and the Ministry of the Economy, 60 percent) will be governed by a shareholders' agreement. 
• These shareholder agreements assign the operational management of Ita Airways to Lufthansa, even though it's the minority shareholder initially.

The first Phase marks the transition period, with an investment of 320 million euros by the German group for the acquisition of up to 40% of the former national airline through a reserved capital increase. 

For the disbursement, however, the closing of the operation is awaited - the second phase - which will take place after the go-ahead from the European Antitrust, presumably in the autumn.

The third is the shareholder agreement, because after the breakeven (expected at the end of 2025) Lufthansa will be able to acquire the rest of the company for an estimated amount of around 500 million for 50% of Ita, leaving the remaining 10% to the Italian Treasury.

Sources say , Lufthansa wants to work immediately for a return to profit within a reasonable time frame. It's also said, with an injection of 250 million, the Treasury will replenish the cash flow of Ita Airways which in the first quarter amounted to 402 million, with the last tranche of the 1.35 billion that had the authorization of the commission European.

 After the signing, which is given as imminent by the government , as the exclusive negotiation expired on 12 May, the assembly will be convened for the appointment of the new Board of Directors , already in the transition period the government seems willing to bring a representative of the German group to the board, Joerg Eberhart , the head of strategy of the Lufthansa Group.

Worth noting, Lufthansa came the Race to acquire ITA Airlines Last year , after a note from the Italian Ministry of Economy and Finance had notified the termination of the exclusivity obligations granted to Certares, Air France-KLM and Delta for the sale by Ita Airways.

In September 2021, ITA had signed an MoU to Buy 28 Airbus Aircrafts and lease 31 More to consolidate its fleet around Airbus. The memorandum of understanding included 10 Airbus A330neo wide-bodies, 11 of the A320neo family aircraft, and seven smaller A220s for regional routes.

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