In 2009, Lufthansa bought 45% of the holding company that owns Brussels Airlines, SN Air Holding, for €65 million. At the same time, the Germans also acquired an option to buy the remaining 55% for a maximum price of €185 million. In the spring of this year, Lufthansa had the option to take up its sale but declined. Another chance will arise in June 2012, and the last in 2013.
Everything depends on the share price at the moment Lufthansa decides whether or not to exercise its “call” option. Last year, BA made a small profit of €5.25 million. This year, however, the company is on track to lose €60 million as a result of higher oil prices, as well as fleet investments. If the share price follows those earnings figures, it’s likely Lufthansa could pick up the remaining 55% of BA for less than the maximum price.
According to Bloomberg, Lufthansa will wait until next year before reaching a decision on its option. If they were to declare their intentions now, the share price of BA might go up and make the deal suddenly less interesting for Lufthansa.
Meanwhile, luxury leather goods house Delvaux, one of the most internationally recognised Belgian brands, has fallen largely into Chinese hands. Last week, the Hong Kongbased Fung Brands Limited obtained an undetermined stake in the company for an undisclosed price.
Delvaux was set up in 1829 and specialised in travel trunks and suitcases, later moving into the handbags for which they are today so famous. In 1933, the Delvaux family sold to the Schwennicke family, which controlled the company until last week. After the Chinese deal, they retain a minority stake.
Delvaux employs 245 people, 140 in Belgium and the rest in France and Vietnam. The takeover, the company said, will have no effect on jobs.
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