April 23, 2012
Lufthansa completes sale of British Midland to IAG
Lufthansa has completed the sale of British Midland (bmi) to International Airlines Group (IAG). The completion of the sale took place after close of business on 19th April 2012. The gross purchase price amounts to GBP 172.5m (approx. €207m). Because price adjustments were agreed as part of the transaction structure, the net purchase price will be determined at the end of the second quarter 2012, at which point the final amount will be transferred. It is widely expected that the net purchase price will be negative but Lufthansa is certain that the costs of the transaction will amortise within one year. The gross purchase price is expected to be reduced by a number of items including agreed deductions for not selling bmi regional and bmibaby prior to the completion of the transaction.
bmi’s underfunded Pension Scheme is to be transferred to the UK Pension Protection Fund. The pension shortfall for the members of the bmi Pension Scheme will be offset to a large extent by a one-off contribution from Lufthansa of GBP 84m to a supplementary pension scheme.