Air Berlin PLC (AIBEF.PK) and Etihad agreed an extensive strategic co-operation. Etihad and Air Berlin plan to develop significant measures of co-operation on an operational level on the basis of a commercial co-operation agreement. The company said these measures include a far-reaching codeshare deal.
Etihad would subscribe for a number of 31.57 million new shares issued under exclusion of the pre-emptive rights of Air Berlin'ss existing shareholders on the basis of a set share price of 2.31 euros, which would, together with Etihad's existing 2.99% interest in Air Berlin, increase the voting rights in Air Berlin to 29.21%, the company noted.
Air Berlin estimates the effects of the anticipated synergies to amount to nearly 35 million euros to 40 million euros in 2012. Further, Air Berlin continues to plan joining oneworld alliance by spring 2012.
Air Berlin's board would be expanded by three Non-Executive Directors to a total number of 17 Directors. Two Non-Executive Directors would be appointed upon nomination by Etihad. James Hogan, the Chief Executive of Etihad, would be named Vice-Chairman of Air Berlin's board. The closing of the transaction is planned for the first quarter of 2012.
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