20-Sep-2010 10:28 AM

SAS in final agreement regarding Estonian Air

SAS Scandinavian Airlines reached (17-Sep-2010) an agreement with the Estonian Government that will result in SAS divesting its 49% stake in Estonian Air. The Estonian Government will provide approximately EUR21.6 million in a new rights issue and SAS will convert approximately MSEK20 in loans into equity. After the rights issue the Estonian State will hold 90% and SAS 10% of Estonian Air. SAS will remain lender of approximately EUR7.6 million in loans with a maturity in 2014. Estonian Air has an option to buy SAS remaining stake and SAS has the option to sell its stake at fair market value after four years. The transaction will take effect automatically after the Estonian parliament has approved a change in its 2010 state budget whereby the state channels into the budget of the area of government of the Ministry of Economy and Communications EUR18 million for increasing the share capital of Estonian Air. [more - SAS] [more - Estonian Air]

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