Posted on: 17 September 2010 by Ross McSweeny
The SAS Group has reached an agreement with the Estonian Government that will result in SAS divesting some of its 49% stake in Estonian Air.
The Estonian Government will provide approximately SEK 200 million in a new rights issue and SAS will convert approximately SEK 20 million in loans into equity. After the rights issue the Estonian State will hold 90% and SAS 10% of the airline.
Estonian Air has an option to buy SAS’s remaining stake and SAS has the option to sell its stake at fair market value after four years. The transaction is conditional upon parliamentary approval in Estonia. The transaction is neutral to profit and liquidity of the SAS Group.
SAS will continue its commercial co-operation with Estonian Air in terms of operations and codesharing.