Network Corporate Finance has successfully advised Split, Croatia based European Coastal Airlines d.o.o. in identifying its seed finance partner and structuring the first round funding.
Transaction
European Coastal Airlines (ECA) has won Munich based LEHEL Industry Group as lead investor for the set-up and operation of a new airline in Croatia. In the course of the first financing round LEHEL acquires a 26% share in ECA with an increase in capital. The seed phase is used to close company start-up including all concessions for operative air traffic.
Company
From mid-2013 on ECA will connect Croatian Adriatic islands with twin otter seaplanes and thus strengthen the Croatian infrastructure as well as the already continuously booming tourism. Up to 2014 6 seaplanes will approach 14 destinations in regularly scheduled flights. Furthermore ECA plans additional steps to connect also Italy and other neighboring countries with the Croatian Adriatic in the medium-term.
Immediately after concession issuance for airline operation and all 14 destinations ECA and LEHEL will enter the second financing round involving third party capital investors as well as Croatian banks and the Croatian government.
LEHEL Industry Group is a privately held diversified industrial holding, which invests in majority stakes in medium sized enterprises and corporate spin-offs in growth or reorganisation phases. The LEHEL Industry Group employed until recent divestitures 430 employees working within five portfolio companies with combined sales of approx. EUR 350m.
For additional info on European Coastal Airlines please refer to www.ec-air.eu and for LEHEL to www.lehel-industrie.com
