By Sean Carney
PRAGUE--Korean Air Lines Co. (003490.SE), which holds a 44%
stake in Czech flag carrier CSA Czech Airlines, is selling its
option to an additional 34% stake and will become the Prague-based
company's largest shareholder following the sale, Czech Aeroholding
said Thursday.
Korean Air is selling the option to the Czech privately-held
charter air company Travel Service to "reinforce its operations in
Europe," the statement said.
Financial details of the transaction weren't divulged and
regulatory approval is still needed.
"The entry of Travel Service into CSA will provide Korean Air
with connections to approximately 40 new destinations in Europe to
which their passengers will be able to fly after their transfer at
Vaclav Havel Airport Prague," Czech Aeroholding said.
Czech Airlines has been a loss-maker in recent years and the
entrance of Korean Air was largely seen as a lifeline to the
company that had earlier sold most fixed assets but maintains its
valuable roster of airport slots and flight connections mostly in
Europe.
Following the transaction, the stake of state-owned Czech
Aeroholding will fall to 19.74% of CSA from 53.74%, and
Assicurazioni Generali Spa (G.MI) unit Ceska Pojistovna AS will
maintain its 2.26% share.
Write to Sean Carney at sean.carney@wsj.com
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