newstodate.aero
Feb 27, 2009 (newstodate): SAS has decided to participate in an effort to keep Estonian Air flying by participating in a 7.4 mio euro rights offering in order to provide for additional liquidity to fund the future cash flow and capital requirements of the ailing company.
SAS reason for participation is the need to protect the value of its 49 percent ownership stake in Estonian Air.
SAS will subscribe for its pro rata portion of the shares to be issued in the rights offering, by converting EUR 2.4 million of outstanding loans to Estonian Air into equity in the company and by a cash payment of EUR 1.2 million.
The SAS Group intends to proceed with its plans to divest its interest in Estonian Air in accordance with Core SAS.
SAS reason for participation is the need to protect the value of its 49 percent ownership stake in Estonian Air.
SAS will subscribe for its pro rata portion of the shares to be issued in the rights offering, by converting EUR 2.4 million of outstanding loans to Estonian Air into equity in the company and by a cash payment of EUR 1.2 million.
The SAS Group intends to proceed with its plans to divest its interest in Estonian Air in accordance with Core SAS.