STOCKHOLM (Dow Jones)--Swedish airline FlyMe Europe AB (FLY-B.SK) late Sunday said it has signed a deal to acquire Lithuanian Airlines, without giving financial details.
The company said its majority owner, Iceland's Fons Eignarhaldsfelag, has reached an agreement with Lithuanian Airlines, whereby it will launch a directed share issue to FlyMe. After the share issue, FlyMe will hold 33% of the share capital and votes in the Lithuanian Airlines.
FlyMe will have the right to appoint the chief executive, chairman of the board as well as the majority of the board members in Lithuanian Airlines.
It will then be entitled to increase its holding in Lithuanian Airlines successively, to reach a 100% by February 25, 2009.
FlyMe said Lithuanian Airlines has a 40% market share in the Lithuanian air travel market and about 580 staff. It has a fleet of five Boeing and two SAAB aircraft.
-By Malin Rising, Dow Jones Newswires; +46 8 545 130 95; email@example.com