Airline SAS says investment firm Castlelake, Air France-KLM to become new shareholders

Lind Invest, a Danish investment firm, will hold 8.6% of equity, SAS said. The company said total investments in the reorganized SAS would amount to 12.9 billion Swedish crowns ($1.16 billion). Castlelake becoming the biggest shareholder is a surprise move, as many had expected the U.S. private equity giant Apollo Global Management to have the winning bid. SAS will be delisted from the Stockholm stock exchange, Dilling said.

Scandinavian airline SAS said on Tuesday that investment firm Castlelake and Air France-KLM would become new major shareholders in the airline alongside the Danish state following bankruptcy proceedings.

Castlelake will take a stake of around 32%, Air France-KLM's will be around 20%, while the Danish state will hold about 26%, SAS said. Lind Invest, a Danish investment firm, will hold 8.6% of equity, SAS said.

The company said total investments in the reorganized SAS would amount to 12.9 billion Swedish crowns ($1.16 billion). "This is a significant achievement of our transformation plan," SAS Chairman Carsten Dilling said in a statement.

"We have carried out a broad, competitive and thoroughly evaluated equity solicitation process, and we are confident that the selected bid is the most favourable for SAS, its creditors and other stakeholders," he said. Castlelake becoming the biggest shareholder is a surprise move, as many had expected the U.S. private equity giant Apollo Global Management to have the winning bid.

SAS will be delisted from the Stockholm stock exchange, Dilling said. Scandinavia's biggest carrier filed for bankruptcy protection in the United States in mid-2022 after years of struggling with high costs coupled with low customer demand brought on by the pandemic. ($1 = 11.1283 Swedish crowns)

 

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