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Saudi businessman set to take stake in Austrian Airlines

VIENNA - Saudi investor Mohamed Bin Issa Al Jaber is set to take a 20-percent stake in Austrian Airlines after the carrier’s current shareholder, state-owned OeIAG, agreed in principle to the move on Monday.

“The OeIAG supervisory board agreed in principle to the acquisition of a stake in Austrian Airlines by the Austro-Saudi investor Mohamed Bin Issa Al Jaber by way of a capital increase,” the state-owned holding company said in a statement.

Al Jaber, who has Austrian citizenship and owns a range of hotels in Vienna, is to join the so-called Austrian syndicate, which includes domestic banks and insurance companies in addition to OeIAG, with a portion of his future shareholding in the airline and thus ensure that a majority stake in AUA remains in Austrian hands.

“As part of our negotations with Mr Al Jaber, we’ve succeeded in bringing about a win-win situation,” said OeIAG chairman Peter Michaelis.

With Al Jaber, “AUA can strengthen its strategic position and press ahead with its planned expansion in the near and Middle East. We believe it will create substantial added value for the airline and its shareholders,” Michaelis said.