Lufthansa Technik (LHT) remains a key property in Lufthansa Group's portfolio, but the German conglomerate has not ruled out seeking an equity partnership in its aftermarket specialist.
“Currently, we're not preparing specifically for this,” Marc-Dominic Nettesheim, head of investor relations at Lufthansa Group, said at the recent mwb research German Select investor conference. “We want to increase the value of the company first, and then we take it from there.”
Lufthansa explored divesting a minority stake in LHT following the 2020 downturn to help strengthen its balance sheet, but ended three years of talks without a deal. Instead, the group continued to invest in its global aftermarket juggernaut.
Now Lufthansa is in the midst of a multiyear push to improve efficiency across the board. While most of the changes affect the group's airlines, every part of the company is affected.
“Technik is one of the pearls in our portfolio, and therefore we decided to develop the company on our own as a 100% subsidiary,” Nettesheim said. “That does not mean that for all time in the future, any potential transaction is fully ruled out.”
Nettesheim suggested any deal must go beyond an attractive purchase price. The previous effort prioritized a package of factors, including what the partner brought to the table and how well it could help Lufthansa develop LHT.
In the end, “the entirety of the factors that mattered didn't sit well,” he said.
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