Shares in SAS, the Scandinavian airline, plummeted by 95% at market open on Wednesday after the company announced significant changes to its ownership structure. The restructuring plan will result in the delisting of SAS from stock exchanges and the erasure of existing ownership stakes.
SAS revealed that U.S. investment firm Castlelake and Air France-KLM will become major shareholders in the airline, alongside the Danish state, following bankruptcy proceedings. These new shareholders are expected to play a crucial role in the company’s recovery and future operations.
The airline, Scandinavia’s largest carrier, had filed for bankruptcy protection in the United States earlier this year due to the combination of high costs and low customer demand caused by the ongoing pandemic. This restructuring effort is seen as a necessary step towards stabilizing the airline’s financial position and ensuring its long-term viability.
Under this new ownership structure, Castlelake will acquire a stake of approximately 32%, Air France-KLM will own around 20%, Lind Invest will hold 8.6%, and the Danish state will have a stake of about 26%. The remaining equity is expected to be distributed among the airline’s creditors.
The news of the ownership shake-up had an immediate impact on SAS’s share price, which already suffered significant declines in previous years. At 0742 GMT, SAS shares were trading down 79%, reaching a value of just 0.06 Swedish crowns ($0.0054).
The future prospects of the airline will largely depend on the success of its restructuring efforts and the ability to adapt to the challenging aviation landscape caused by the pandemic. The new shareholders are expected to bring fresh capital and expertise to help SAS navigate these turbulent times.
Reporting by Louise Breusch Rasmussen in Copenhagen and Anna Ringstrom in Stockholm; Editing by Terje Solsvik.
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