Air France-KLM completes SAS stake purchase

Air France-KLM says it has completed its acquisition of a 19.9 per cent stake in Scandinavian Airlines (SAS) following regulatory approvals in Europe and the U.S.

As shared in an Aug. 28 press release, Air France-KLM and SAS have signed far-reaching interline and codeshare agreements to connect their hubs and networks.

These agreements, which cover reciprocal loyalty program benefits, will enter into force as early as Sept. 1, 2024, the group says.

On the same day, SAS will join the Skyteam alliance, of which Air France and KLM are founding members.

“We are pleased to have completed this strategic transaction. SAS will enhance the Group’s footprint in the Scandinavian markets. SAS, Air France and KLM customers will now have a larger number of destinations via codeshares. Skyteam will immediately gain a new strategic member,” stated Benjamin Smith, Air France-KLM Group CEO.

A consortium of investors

The transaction was completed by Air France-KLM Group as part of a consortium of investors which also includes Castlelake L.P., Lind Invest ApS, and the Danish State.

The consortium now holds an aggregate 86.4 per cent stake in the share capital of the reorganized SAS AB (exclusive of the recovery by the Danish State in its capacity as a creditor of SAS and pursuant to SAS’s restructuring plans), having invested $1.2 billion USD in the company, by subscribing for $475.0 million USD of common shares and by purchasing $725.0 million USD of senior secured convertible notes.

Air France-KLM itself invested $144.5 million USD in SAS AB, by subscribing for $109.5 million USD of common shares and by purchasing $35.0 million USD of senior secured convertible notes.

Specific provisions have been agreed upon between the members of the consortium, whereby Air France-KLM’s stake could be increased to the point of becoming a controlling shareholder, after a minimum of two years (subject to regulatory conditions and financial performance).

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