German airline Lufthansa and Air France-KLM will reduce their stakes in Spanish travel technology company Amadeus IT Holding SA by selling 5.28 percent of the company's share capital.

Lufthansa will sell around 16 million Amadeus shares, equivalent to 3.61 percent of the company, sole bookrunner HSBC said in a statement on Tuesday.

Air France-KLM said Societe Generale would sell 1.66 percent of Amadeus' share capital after the airline entered into a hedging transaction with Societe Generale to protect the value of 12 million Amadeus shares - 2.68 percent of the company.

Lufthansa and Air France are the biggest shareholders in Amadeus, with stakes of 7.6 percent and 7.3 percent respectively, while 83 percent of the company's share capital is free-float.

"This transaction is part of Air France-KLM's asset and risk management strategy. Air France-KLM continues to support Amadeus management's strategy," Air France said in the statement.

Lufthansa, Air France and Iberia, which holds 0.84 percent of Amadeus, have agreed to a lock-up period of 90 days, HSBC said in a statement to the Spanish stock market regulator.

Amadeus, which provides technology to travel and tourism firms, reported a 8.4 percent increase in nine-month revenue last week.

Lufthansa intends to transfer the rest of its stake in Amadeus to its pension subsidiary, HSBC said.

Related News:

    Air France-KLM Keeps Goal to Raise H2 Profit

    Lufthansa Steps Up Cost Cuts As Economy Worsens