European Commission Approves Purchase of Shares in Czech Airlines by Travel Service
5.01.2015Company: Amcham
The European Commission has published its decision approving shared control in Czech Airlines by Czech Aeroholding and Travel Service. By obtaining the approval, a crucial condition was fulfilled, qualifying Travel Service to become a Czech Airlines shareholder. This step does not change Czech Airlines status of a European carrier. Upon completion of the transaction, expected to be finalised within two months, the shareholding structure of Czech Airlines will be as follows: Korean Air 44 %, Travel Service 34 %, Czech Aeroholding 19.74 % and Česká Pojišťovna 2.26 %.
At the end of 2013, the Korean Air Lines company informed Czech Aeroholding, current holder of 53.74% share in Czech Airlines, about its requirement to use option to exercise its right to purchase additional 34% of Czech Airlines’ stock from Czech Aeroholding. This step is in line with the Purchase Agreement about sale of 44 % of Czech Airlines’ share (entered into by Korean Air and Czech Aeroholding in April 2013). Korean Air has previously indicated its intention to subsequently sell the purchased 34% stake to Travel Service. The transaction had to be reviewed by four respective national antimonopoly offices and the European Commission.
Already on 10 April 2013, a Purchase Agreement was signed regarding the sale of 460,725 Czech Airlines shares (44%) by Czech Aeroholding. The shares, which Korean Air Lines will keep holding, were transferred to the Korean shareholder as of 31 July 2013.
