The Air France – KLM Group has successfully acquired a 19.9% non-controlling stake in the share capital of Scandinavian airline SAS AB, solidifying its presence in the Scandinavian market.
The transaction, which was finalized after receiving regulatory approvals in Europe and the United States, marks a significant strategic move for the European aviation giant.
The news comes on the heels of last month’s announcement about new codeshare and interline agreements between the two airlines. These agreements, set to begin on Sept. 1, 2024, will link the hubs and networks of the two airlines, offering customers enhanced connectivity and reciprocal loyalty program benefits. Additionally, SAS will officially join the Skyteam alliance on the same day, aligning itself with Air France and KLM, two of the alliance’s founding members.
“We are pleased to have completed this strategic transaction. SAS will enhance the Group’s footprint in the Scandinavian markets,” said Benjamin Smith, CEO of the Air France-KLM Group. “SAS, Air France, and KLM customers will now have a larger number of destinations via codeshares. Skyteam will immediately gain a new strategic member.”
The acquisition was part of a broader investment by a consortium that includes Castlelake L.P., Lind Invest ApS, and the Danish State. Collectively, the consortium now holds an 86.4% stake in SAS AB’s reorganized share capital, following a $1.2 billion USD investment. This includes $475 million USD in common shares and $725 million USD in senior secured convertible notes.
Air France-KLM’s specific contribution to the deal totalled US$144.5 million, comprised of $109.5 million in common shares and $35 million in senior secured convertible notes. The group’s investment plan allows for a potential increase in its stake to a controlling share after a minimum of two years, pending regulatory approval and certain financial conditions.
This strategic investment is part of Air France-KLM’s broader roadmap and was already accounted for in the group’s financial outlook for 2024. The acquisition is not expected to impact the company’s medium-term financial projections.
