The primary objective for Air France-KLM in this venture is to expand its presence in the Scandinavian markets by fostering commercial cooperation between its own airlines and SAS.
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Air France - KLM GroupAir France-KLM intends to acquire a non-controlling stake of up to 19.9% in the restructured SAS AB, pending various approvals and conditions.
The primary objective for Air France-KLM in this venture is to expand its presence in the Scandinavian markets by fostering commercial cooperation between its own airlines and SAS.
This development comes after SAS AB’s Board of Directors selected a consortium consisting of Air France-KLM Group, Castlelake LP (representing certain funds or affiliates), and Lind Invest ApS as the successful bidder in SAS’s exit financing solicitation process.
Air France-KLM’s CEO, Benjamine Smith, expressed the significance of this partnership, emphasizing the positive prospects it offers. He noted that SAS, with its established position in Scandinavia and strong brand, presents significant potential for Air France-KLM. The collaboration is expected to bolster Air France-KLM’s standing in the Nordic region and enhance connectivity for travelers within Scandinavia and Europe.
The consortium’s investment proposal is contingent upon various conditions and regulatory approvals, including consent from the European Commission, approval from the US court overseeing the Chapter 11 reorganization, and approval from the Swedish court in the case of SAS AB.
Should all the necessary approvals and conditions be met, the consortium, along with the Danish State, plans to invest a total of USD 1.175 billion. This investment includes USD 475 million in common shares and USD 700 million in secured convertible bonds.
Air France-KLM’s portion of the investment would amount to USD 144.5 million, with USD 109.5 million allocated to common shares and USD 35 million designated for secured convertible bonds. Following the completion of the transaction, Air France-KLM would hold a non-controlling stake of up to 19.9% in the share capital of the restructured SAS AB.
Source: Air France- KLM
