Etihad increases Air Berlin stake to 29.21%

Tuesday, 20 December 2011 00:00 - - {{hitsCtrl.values.hits}}

FRANKFURT (Reuters): Etihad Airways is raising its stake in Air Berlin to 29.21 percent from 2.99 percent, as part of plans for strategic cooperation, Air Berlin said on Monday.

The move comes shortly after Etihad said a report it planned to raise its stake in Air Berlin was "inaccurate".

The cooperation includes a codeshare agreement. Air Berlin estimates the effects of the anticipated synergies to amount to about 35 million euros ($45.7 million)to 40 million euros in 2012, it said.

Air Berlin said it still plans to join the Oneworld alliance of airlines by European spring 2012.

Etihad will buy some of 31,574,312 new Air Berlin shares issued under exclusion of the pre-emptive rights of Air Berlins existing shareholders.

Etihad has further undertaken to arrange for a debt financing in favour of the Air Berlin-Group in a total amount of up to $255 million with a term until Dec. 31, 2016. ($1 = 0.7665 euros)