newstodate.aero
Sep 17, 2010 (newstodate): The Estonian state and SAS have today announced a final agreement on the ownership of Estonian Air.
The agreement will result in SAS divesting its 49 percent stake.
The Estonian Government will provide approximately MSEK 200 in a new rights issue and SAS will convert approximately MSEK 20 in loans into equity.
After the rights issue the Estonian State will hold 90 percent and SAS 10 percent of Estonian Air.
SAS will remain lender of approximately MSEK 70 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 agreement is now to obtain parliamentary approval in Estonia, which is considered a formality.
Once the agreement is fully endorsed, the planned acquisition by Estonian Air of three Bombardier aircraft will also take full effect.
The agreement will result in SAS divesting its 49 percent stake.
The Estonian Government will provide approximately MSEK 200 in a new rights issue and SAS will convert approximately MSEK 20 in loans into equity.
After the rights issue the Estonian State will hold 90 percent and SAS 10 percent of Estonian Air.
SAS will remain lender of approximately MSEK 70 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 agreement is now to obtain parliamentary approval in Estonia, which is considered a formality.
Once the agreement is fully endorsed, the planned acquisition by Estonian Air of three Bombardier aircraft will also take full effect.