The European Commission has approved Denmark and Sweden's plans to inject up to 11 billion Swedish kronor into the crisis-stricken airline SAS, the Commission announced in a press release.
At the end of June, the Scandinavian airline SAS announced a rescue package totaling SEK 14.25 billion, with the Swedish and Danish states increasing their ownership by injecting SEK 5 and 6 billion, respectively.
Last week, SAS's board decided to adjust parts of its previous recapitalization plan, thereby receiving support from its two largest shareholders, the Swedish and Danish states, along with the third largest shareholder, the Knut and Alice Wallenberg Foundation.
The recapitalization of the member states involves around SEK 2 billion through a new issue of ordinary shares, divided between the states. SEK 3 billion comes through subscription and guarantee commitments in a preferential issue of new ordinary shares, divided between Denmark and Sweden.
The remaining 6 billion Swedish kronor will be recapitalized through the issuance of new hybrid bonds that cannot be converted into shares, of which 2.5 billion Swedish kronor will be allocated to Sweden and 3.5 billion Swedish kronor to Denmark.
Source: di.se
”"SAS plays a crucial role in the connectivity and economies of the Scandinavian countries," said EU Commission Vice-President Margrethe Vestager, responsible for competition policy, in the press release.
”I welcome the participation of private investors in the plan, as it limits the need for state support while helping companies affected by the Covid-19 pandemic to recover,” she continues.
