SWEDEN/LITHUANIA. Swedish low-cost carrier FlyMe Europe has signed a deal to acquire Lithuanian Airlines.
The deal is subject to approval by the Lithuanian authorities, due diligence and approval by FlyMe’s board of directors by 30 March.
The first stage of the acquisition will take place through a share issue in Lithuanian Airlines to be subscribed by FlyMe, which will give the Swedish company 33% of the capital and votes. FlyMe will then have the right to appoint a CEO, Chairman and the majority of Lithuanian’s board.
FlyMe will then have the right to acquire 18% between October and December 2007, and another 24% between March and May 2008. In the final stage FlyMe will be able to buy the remaining 25% between January and February 2009.
Lithuanian Airlines holds a 40% share of the air travel market in Lithuania. It operates five Boeing 737-500 and two SAAB 2000 aircraft.
FlyMe operates flights to and from Stockholm, Gothenburg, Malmö, Ostersund and Helsinki.
