Saturday, 5 October 2013

Wideroe Sale Complete

SAS Scandinavian Airlines has completed the previously announced sale of 80% of regional carrier Widerøe to a Norwegian investor group, netting about SEK2 billion ($311 million), which includes aircraft-related transactions. The investor group comprises Torghatten ASA, Fjord1 AS and Nordland Fylkeskommune.
The sale, which was announced in May, is part of the carrier’s survival strategy.
SAS Group president and CEO Rickard Gustafson said recently the carrier had to make “some big movements and steps” during the restructuring process. “The sale of Widerøe was one of these.”
The proceeds from the transaction are expected to reduce SAS’ net debt by a corresponding amount, the airline said in a statement.
Approximately half of the proceeds will strengthen SAS’ cash and cash equivalent position. In addition, the transaction will reduce the previously announced negative effect on SAS shareholders’ equity from amended reporting rules for pensions by approximately SEK1 billion.
SAS will divest the remaining shares in Widerøe during 2016.

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