The Swedish state isn’t planning to remain a long-term owner in SAS AB, even if part of the debt it is owed is converted to equity as part of Tuesday’s plan to take the airline private, according to Finance Minister Elisabeth Svantesson.
(Bloomberg) — The Swedish state isn’t planning to remain a long-term owner in SAS AB, even if part of the debt it is owed is converted to equity as part of Tuesday’s plan to take the airline private, according to Finance Minister Elisabeth Svantesson.
The Scandinavian carrier’s $1.18 billion restructuring deal with Air France-KLM and other investors effectively wiped out its existing shareholders, including the Swedish state with a 21.8% stake. Sweden’s exposure to the troubled airline also extended to so-called hybrid bonds and the government had earlier said that it would accept a conversion of debt it was owed into equity, but wouldn’t participate in any new capital raise.
“The government has the same stance as the previous one, for which there is wide support in parliament,” Svantesson said in a text message sent by her press department. “The Swedish state shall be a responsible, but not long-term, owner in SAS.”
Sweden’s administration will monitor the ongoing restructuring process closely at SAS, said Svantesson, who added that “the government will be handled just like any other shareholders.”
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