Attestor Becomes New Majority Shareholder of Condor
The European asset manager Attestor has acquired a 51 percent stake in Condor, as the closing of the previously announced transaction has been completed. The transaction was approved by both anti-trust officials and the EU commission.
On Tuesday (July 27, 2021) Condor announced that European asset manager Attestor has acquired a 51 percent stake in the company as planned. The transaction was approved by both anti-trust officials and the EU Commission, which also issued state-aid approval of the acquisition of Condor through Attestor. With regulatory approvals secured, Attestor has invested €200 million in fresh equity in Condor, with an additional €250 million to be invested in the modernization of the popular German leisure airline’s fleet.
In Tuesday’s announcement, Condor’s CEO, Ralf Teckentrup, said,
“The future of Condor begins today: Attestor will be a strong majority shareholder who will not only keep all 4,050 jobs at Condor and Condor Technik, but will also set the company’s financial direction. With the fresh equity capital Condor is in a strong financial position to quickly ramp-up flight operations and meet growing demand. And we will also be able to concentrate on projects such as the modernization of our long-haul fleet. We will do this with the same passion that we used to steer Condor through the crisis during the past 22 months. On behalf of all employees, I would like to express my special thanks to Attestor for the trust they have placed in us as well as to politicians, our partners and our customers who have stood so strongly behind us.”
Also commenting on the transaction closing, Attestor’s Head of Private Investments, Friedrich Andrae, said,
“Now that anti-trust and state-aid approval has been issued, Condor can apply all of its energies again to flying into a successful future. We at Attestor are very pleased to accompany a proud airline like Condor on this journey. We believe in the strong brand, the competitive business model and the attractive market segment of touristic travel. Above all, we believe in the strong team behind Condor. This is why we are investing significantly in the company. By doing so, we are laying the foundation for Condor to establish itself as a strong second carrier in the important German domestic market and as a leading leisure airline in Europe.”
Condor has a proven business model and has been historically profitable. Over the last few years, the company ran into difficulties due to the bankruptcy of its former parent company Thomas Cook, followed by the global COVID-19 pandemic. Attestor has now taken a 51 percent equity stake in the company, while the remaining 49 percent stake will continue to be held by SG Luftfahrtgesellschaft on behalf of the German Federal Government and the state of Hesse. Attestor retains the option of acquiring the remaining shares in the company later. Condor’s KfW loan has been repositioned and restructured with a debt waiver and the company will repay the remainder of the loan on time as agreed.
Founded in 1956, Condor is Germany’s favorite leisure airline, normally serving around 9.4 million guests annually to 90 destinations in Europe, Africa and America from eight German gateways. During the financial year 2018/2019, Condor Flugdienst recorded a net profit of €57 million on revenue of €1.7 billion. The German leisure carrier has a fleet of 50 aircraft which are meticulously maintained to the highest safety standards by their wholly-owned subsidiary Condor Technik with facilities in Frankfurt and Düsseldorf.