Lufthansa to Take Stake in Latvia’s AirBaltic Ahead of IPO

Deutsche Lufthansa AG will buy a 10% stake in Latvian flag carrier AirBaltic AS as the German carrier group continues its consolidation push in Europe.

Lufthansa’s €14 million investment will be convertible into ordinary shares when AirBaltic completes its planned initial public offering, the airlines said in a statement Tuesday. Lufthansa will receive a board seat as part of the transaction.

The German carrier group has been building investments in national flag carriers with the option of later increasing ownership. This month, Lufthansa completed its purchase a 41% stake in Italy’s ITA Airways, the successor to Alitalia, adding to its ...