newstodate.aero
Jun 04, 2010 (newstodate): The long drawn-out negotiations betweeen SAS and the Estonian state over the future ownership stucture of Estonian Air has now come to a conclusion.
The parties have agreed that the Estonian state will provide approximately MSEK 205 of new capital in a new rights issue, and SAS will convert about MSEK 20 in loans into equity.
After the rights issue the Estonian Government will hold 90 and SAS 10 percent of Estonian Air, replacing the current ownership structure where SAS holds 49 percent of the stakes in the airline, the Estonian state 33 and the investment bank Cresco 17 percent.
In February 2009, SAS provided a loan of MSEK 70 to Estonian Air to support the carrier's continued operations, and this loan will be run till 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, when the loan is also to be paid back.
After this, Estonian Air has secured its survival as a state-owned carrier, and will also now have the financial security to conclude the deal with Bombardier for delivery, long overdue, of three ex-factory CRJ900 NextGen to replace most of its current fleet of six Boeing 737 aircraft.
The parties have agreed that the Estonian state will provide approximately MSEK 205 of new capital in a new rights issue, and SAS will convert about MSEK 20 in loans into equity.
After the rights issue the Estonian Government will hold 90 and SAS 10 percent of Estonian Air, replacing the current ownership structure where SAS holds 49 percent of the stakes in the airline, the Estonian state 33 and the investment bank Cresco 17 percent.
In February 2009, SAS provided a loan of MSEK 70 to Estonian Air to support the carrier's continued operations, and this loan will be run till 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, when the loan is also to be paid back.
After this, Estonian Air has secured its survival as a state-owned carrier, and will also now have the financial security to conclude the deal with Bombardier for delivery, long overdue, of three ex-factory CRJ900 NextGen to replace most of its current fleet of six Boeing 737 aircraft.