OHB SE and AFK Enterprise invest in Deutsche Aircraft's sustainable aviation goals
We have advised German space and technology company, OHB SE, on the formation of a joint venture with AFK Enterprise AG and assisted them in the joint venture’s acquisition of a minority stake in Deutsche Aircraft Holdings. The equity investment will propel the development of new greener aviation technologies.
The acquisition of the minority stake in Deutsche Aircraft Holdings, which may even lead to a majority stake later on, will accelerate progress on D328eco®, a more environmentally friendly version of the acclaimed Do328 short-haul passenger aircraft. The acquisition is subject to approval from the German Government which is currently supporting development of the D328eco with a high volume development cost loan. The transaction is anticipated to close during the first quarter of 2023 following regulatory approvals and other customary closing conditions.
The equity investment is a demonstration of the growing confidence in the aviation industry to meet increasing demand for more sustainable, energy efficient and cost-effective aircraft. The partnership will also fuel progress on Deutsche Aircraft Holdings' Leipzig production facilities and open opportunities for development of future aircraft variants in new international markets.
Deutsche Aircraft is founded on the proud heritage of one of Germany’s oldest aviation companies, Dornier, and is the holder of the Do328 type certificate. The D328eco aims to reduce fuel consumption and environmental pollution compared to current similar-class aircraft.
Commenting on the transaction, corporate partner Dr. Amir-Said Ghassabeh said: "It has been a pleasure to support OHB and see the company establish a strong relationship with AFK Enterprise as they worked together to pursue a future-facing project that will help transform the aviation industry towards a greener future. We look forward to working together again with Lutz and the rest of the team as the company continues to grow their broad and innovative portfolio."
Dr. Lutz Bertling, member of the Executive Board OHB SE, said: “With this investment we are significantly strengthening our aerospace business segment. Beyond the current project, OHB intends to develop with its partners strategically more joint business in Europe, the United States and Middle East, including beyond aviation, with first projects already under discussions in the defence and space sectors.”
The team was led by our German corporate partners Dr. Amir-Said Ghassabeh and Robert P. Wethmar with support from corporate partner Dr. Holger Schrewe and senior associate Sven-Alexander Bolay.
Additional support was provided by partners Dr. Wiebke Baars, Dr. Michael Brüggemann, Dr. Marco Hartmann-Rüppel, Prof. Dr. Norbert Kämper, Dr. Martin Knaup, Dr. Jan Phillip Rektorschek, Dr. Tobias Schelinski, Dr. Peter Seemann, Jonas Warnken as well as by associates David Mallmann, Dr. Patrick Vincent Zurheide, Wilhelm Freiherr von Feilitzsch, Lara Skotki, Julia Fischer, Birte Zeitner, Dr. Victoria Bratvogel, Lisa Marie Bütow, Christin Reinke in Germany.
In the UK support was provided by corporate technology partner Philip Shepherd, senior associate Edward Chapman and associate Richard Price.