Arranged take-overs?

English Boards General
1

Hey Airsim,

I would like to hear if it is legal to arrange a take-over? In the terms, that an alliance will create a subsidairy with the only purpose of IPO’ing it, and sell it to me? I have a huge hub in Nepal, with no change of expanding, if I dont do it this way… :slight_smile:

/Banff.

2

Hi Banff,

Correct me if you are wrong is you are looking to...

- Airline in Germany (for example) creates a regional sub

- You buy the regional sub

- You run and own regional sub for the airline within  you alliance

If that is correct there is a problem.

When you take majority control of the regional sub the traffic rights will change to that of your holding companies airline (so Nepal) so you would be bounded by the same traffic rights as you currently have. So therefore no gain...

If I have it wrong (what you want to do) let me know!

Thanks

Ian

3

Hi Ian,

you are correct. If Banf buys the majority of the shares, the German subsidiary of your example would legally be Nepalese and have no rights to carry passengers in Germany.

However, you don't need the majority of the shares to control an airline... if two German holdings own 30% of the shares each and the Nepalese holding owns 40% of the shares, the airline will be controlled by the Nepalese holding but will have German traffic rights. As long as the German holdings don't sell their shares to foreign holdings, that airline would be allowed to carry passengers within Germany and the EU.

Jan

edit: and from Germany to the rest of the world of course  ;-)

4

Hi Ian,

you are correct. If Banf buys the majority of the shares, the German subsidiary of your example would legally be Nepalese and have no rights to carry passengers in Germany.

However, you don't need the majority of the shares to control an airline... if two German holdings own 30% of the shares each and the Nepalese holding owns 40% of the shares, the airline will be controlled by the Nepalese holding but will have German traffic rights. As long as the German holdings don't sell their shares to foreign holdings, that airline would be allowed to carry passengers within Germany and the EU.

Jan

edit: and from Germany to the rest of the world of course  ;-)

Thanks for your replies!

So Jan, if I understand you correctly. If I manage to have 2 alliance members to own each 30% shares in a company, in which they have traffic rights, and I own 40%, I can operate in that country? Kinda difficult, but possible :smiley:

5

Thanks for your replies!

So Jan, if I understand you correctly. If I manage to have 2 alliance members to own each 30% shares in a company, in which they have traffic rights, and I own 40%, I can operate in that country? Kinda difficult, but possible :smiley:

Thats right. But there is another chance of growing in foreign countries. Look out for countries that are open for foreign investors. Complete list here:

http://de.airlinesim.aero/wiki/index.php/Datei:Investitionsoffene_Laender.png