Air France-KLM Group is finalizing the acquisition of a minority stake in the share capital of SAS AB. Beginning September, the airlines commence broad commercial cooperation.
The Air France-KLM Group announced that it has successfully completed the acquisition of a 19.9% minority stake in the share capital of SAS AB. The operation was conducted upon receiving regulatory approval in Europe and the United States.
In parallel with the financial transaction and in line with previous announcements, Air France-KLM and SAS have signed far-reaching interline and codeshare agreements aimed at integrating the networks and hubs of the two aforementioned carriers. These agreements, which also include mutual benefits from loyalty programs, came into effect on September 1, 2024. On the same day, SAS joined the SkyTeam alliance, of which Air France-KLM is a member and founder.
Benjamin Smith, CEO of the Air France-KLM Group, said: “We’re pleased to finalize this strategic transaction. Thanks to the agreement with SAS, the Air France-KLM Group will increase its presence in the Scandinavian markets. Clients of SAS, Air France, and KLM will have a broader choice of routes and destinations as we now co-share many of our flights as codeshare. Moreover, Skyteam welcomes a new member of strategic importance.”
The Air France-KLM Group carried out the transaction as part of a consortium of investors, which also includes the Castlelake hedge fund, investment manager Lind Invest, and the Danish state. The consortium members currently effectively own an 86.4% stake in the share capital of restructured SAS AB (excluding the recovery by the Danish state in its role as SAS’ creditor and in accordance with SAS’ restructuring plans). The total investment of $1.2 billion was divided into a $475 million subscription of ordinary shares and a $725.0 million purchase of secured convertible bonds. The Air France-KLM Group itself invested a total of $144.5 million in SAS AB by subscribing to ordinary shares worth $109.5 million and buying secured convertible bonds worth $35 million.
Special provisions have been agreed between the consortium members, empowering the Air France-KLM Group to increase its stake, thus potentially becoming a majority shareholder after at least two years, subject to certain regulatory conditions and financial results.
The investment by Air France-KLM in SAS is part of the Group’s strategic plan, which has been included in the financial trajectory for 2024 and does not affect its medium-term prospects.
Source: https://managerplus.pl/air-france-klm-przejmuje-dzialy-w-sas-44713
