JetBlue Airways stake held by Lufthansa to be offloaded

JetBlue Airways stake being currently held by Lufthansa is to be offloaded.

Deutsche Lufthansa AG in a statement recently said that it will be issuing a corporate bond exchangeable into shares of JetBlue Airways Corp.

The transaction could see Lufthansa’s stake in JetBlue Airways decline to zero.

Presently, Lufthansa owns around 15.7 percent stake in JetBlue Airways.

Germany’s flag carrier Lufthansa has indicated its plan to offer the JetBlue notes, due in 2017, via its unit Lufthansa Malta Blues LP. According to the airline, the notes will be exchangeable into 46.7 million shares in JetBlue Airways, though Lufthansa has an option to redeem the bonds in cash instead.

JetBlue Airways currently has a market capitalization of around $1.47 billion, valuing Lufthansa’s 15.7 percent stake in the airline at around $231 million.

Lufthansa had acquired a 19 percent stake in JetBlue Airways for around $300 million in January 2009.

Christoph Franz, Chief Executive of Lufthansa, had hinted in September last year that the airline may consider selling its stake in JetBlue Airways.

JetBlue Airways flights are operated out of its main hubs in New York, Boston, Fort Lauderdale, Los Angeles and Orlando.