Last Friday, an emergency meeting of the government took place, in which the national airlines were decided airBaltic listing shares on the stock exchange and attracting a strategic investor so that the state retains at least 25% and one share. Also, when the airline goes to the stock exchange, it was decided to significantly reduce its share capital from 596 million euros to 25 million euros.
With respect to pricing, stock listing timelines, airBaltic business results, other external and geopolitical factors INVL Family Office manager Andrejs Martinovs believes that there is a sense of urgency at the moment, which is probably justified by the weak or unsuccessful performance of airBaltic. The results of the existing management strategy have not yet been achieved (perhaps never will be achieved, but it is too early to conclude), and it would be desirable to choose a better time (later) for the stock exchange listing. But most likely, those who lead and actively participate in this process have different information, and they better see the potential and perspective of stock listing and attracting a strategic investor. We have to hope for that.
A strategic investor?
Minister of Transport Kaspars Briškens (Progressives) has indicated that currently with airBaltic strategic investors are not negotiating for the sale of a controlling stake, but for obtaining a minority stake before or in the process of listing shares on the stock exchange, as well as possibly buying shares on the stock exchange. Consequently, Latvia is ready to give up the controlling stake in the company. Negotiations with a strategic investor are one of the prerequisites for being able to list shares on the stock exchange.
It is to be hoped that both the promoters of the exchange process and everyone in general have a common definition of what a strategic investor is. In A. Martinov’s opinion, it is an investor who is currently a competitor, partner, customer of airBaltic and who, by acquiring a controlling stake in the airline, will create vertical or horizontal synergy, gaining either market share or another positive effect to strengthen its competition in the market. Most likely, such an investor will want to carry out activities related to the merger of airBaltic. His intervention in the operational activities of the airline will be very large, it will lead to maximum control, which will be realized both in the development strategy, in personnel management, in financial management and reporting system, in cash flow control, in marketing activities, in the company’s corporate governance and in the general company culture . In other words, with the arrival of a strategic investor in airBaltic, the owner of the company will change in the most literal sense of the word.
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2024-09-06 01:44:29