euro adhoc: Air Berlin PLC / Mergers - Acquisitions - Takeovers / Air Berlin agreed to acquire 100 % of LTU New code share partner Condor will replace TUIfly

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Disclosure announcement transmitted by euro adhoc. The issuer is responsible
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Acquisition

27.03.2007

London, 27 March. Air Berlin Plc announces the acquisition of 100 %
of LTU. On 26 March 2007, the agreement relating to acquisition of
the participation in LTU was notarised. The purchase price for the
100% participation in LTU is EUR 140 million; by this acquisition,
Air Berlin assumes between EUR 190 and 200 million of net financial
debt of LTU. The agreement is subject to the approval of the German
Federal Cartel Office. The acquisition will be financed in the near
future through the issuance of new shares and convertible bonds in an
expected total amount of approximately EUR 250 million. The issue of
shares will be for up to 10 % of the existing share capital, the
larger portion of the financing will be in the form of convertible
bonds. In addition to funding part of the purchase price, the
proceeds from this financing will be used for the refinancing of
approximately EUR 100 million of LTU’s debt and approximately EUR 50
million of Air Berlin’s debt. The combination of Air Berlin's and
LTU's business is expected to produce annual synergies of EUR 70-100
million. LTU will remain a legally independent company within the Air
Berlin group, with its own management. The LTU name will also be
retained in the foreseeable future. However, there will be a seamless
integration of LTU’s routes into Air Berlin’s network in the European
market. Through this acquisition, Air Berlin is continuing its growth
strategy. Air Berlin also changes its code share partner with the
beginning of the summer flight plan 2007/2008; Condor will replace
TUIfly. In addition, Air Berlin intends to acquire a 49 percent stake
in the Swiss airline company, Belair Airlines AG. Belair is a
subsidiary of the Hotelplan Group which, in turn, is fully-owned by
the Migros Group. Belair currently operates a fleet of three
airplanes.

end of announcement euro adhoc 27.03.2007 06:56:07
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ots Originaltext: Air Berlin PLC & Co Luftverkehrs KG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:
Ingolf Hegner
Head of Investor Relations
+49 (0)30 3434 1532
ihegner@airberlin.com

Branche: Air Transport
ISIN: GB00B128C026
WKN: AB1000
Index: Classic All Share, Prime All Share, SDAX
Börsen: Frankfurter Wertpapierbörse / official dealing/prime standard
Börse Berlin-Bremen / free trade
Hamburger Wertpapierbörse / free trade
Baden-Württembergische Wertpapierbörse / free trade
Börse Düsseldorf / free trade
Bayerische Börse / free trade