FlyLAL sold to Swiss company

  • 2009-01-10
  • TBT Staff in cooperation with BNS

100 percent of the shares in the ailing airline were bought by SCH Swiss Capital Holdings. (Photo Courtesy of FlyLAL).

VILNIUS 's The shareholders of Lithuania's flagship airline,FlyLAL 's Lithuanian Airlines, have signed an agreement to sell 100 percent ofthe company to SCH Swiss Capital Holdings.

The Baltic News Service reported that shareholders who paid25.6 million litas (7.42 million euros) for the company a few years ago wouldnow be forced to settle for a 2.5 million lita payment for the company.

The deal is expected to be closed by Jan. 23, and FlyLAL intends tocooperate with Vilnius Airport,to which it owes about 20 million litas, based on a short-term agreement bythat date.

The Swiss investment fund is taking FlyLAL over as a strategic investor andthe carrier will continue its development as European regional air company, aFlyLAL's statement quoted SCH Swiss Capital Holdings chairman and CEO Jan-ErikJansson as saying.

The plan of company's reorganization and specific future activities would beworked out during the next several weeks, he added.

"The negotiations were launched late last year as the Swiss investmentfund expressed its interest in the Lithuanianair company. The investors studied the situation on the aviation market and theoutlook for FlyLAL's business. The agreement on the sale of shares has beensigned today," Vytautas Kaikaris, FlyLAL-Lithuanian Airlines CEO, said in the statement.

In line with the agreement, SCH Swiss Capital Holdings will purchase allFlyLAL shares from four Lithuaniancompanies, i.e. 40.73 percent from ZIA Valda, 27.15 percent from Indeco:Investment and Development, 22.63 percent from Sanitex and 9.49 percent from VAREALS.

The Swiss company's investments into aviation business, as published on itswebsite, include the aircraft leasing company Alpina Aircraft Leasing and theground services provider Alpina Air Maintenance.

SCH Swiss Capital Holdings, which introduces itself as an industrialholding, was established in the Bahamasin 1977. In 2003 the headquarters of the company were moved to the UK, and in2008 to Switzerland.

In December the shareholders of FlyLAL offered a 51 percent stake in thecompany to the state for a symbolic price of 1 litas and asked for stateguarantees for a 30 million litas (EUR 8.7 mln) loan. However, the TransportMinistry refused to aid the carrier.