Korean Air commits to Czech Airlines stake for minimum five years

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Korean Air has agreed to retain a minimum stake of 34% in Czech Airlines for at least five years, according to Czech Aeroholding, the state-owned majority stakeholder in the airline.

The Czech government earlier this week announced the sale of 44% of its flag carrier to Korean Air for €2.64 million ($3.42 million).

"The transaction documentation states that both parties - Czech Aeroholding and Korean Air - have to hold at least a minimum of 34% for five years," a spokesperson for the Czech aviation group tells Flightglobal.

She adds that Korean Air also has the option of growing its holding by acquiring a 1.5% stake from the city of Prague and a 0.5% stake from the city of Bratislava.

One of those holdings has recently been bought by Czech Aeroholding, the spokesperson confirms, while the second is in the process of being transferred.

Prior to the Korean Air deal, the Czech flag carrier had been 95.7% state-owned through Czech Aeroholding, which was established in March 2011 to bring the country's national aviation assets under one umbrella.

The final sale contract will be signed in late April, with stock and fund transfers due to be completed by the end of the second quarter.