SAS’s Danish chairman predicts that in a few years the airline will have only two owners: Air France-KLM as the majority owner with company only owned by the Danish state.
SAS’s chairman Carsten Dilling (th) predicts that in a few years SAS will become a subsidiary of Air France-KLM, in which the Danish state is involved as a minority shareholder. To the left, CEO Anko van der Werff. Photo: TT NEWS AGENCY Published:
Less than 20 minutes ago
Updated just now
Copy linkCopy linkShare on FacebookShare on FacebookShare by emailShare by email
It is in an interview with the Danish newspaper Berlingske that SAS’s chairman Carsten Dilling makes his prediction.
– The most likely thing is that Air France-KLM and the Danish state will be the only two owners in the long term. But we are probably talking about a process that could last four to seven years in the future before it all falls into place, says Carsten Dilling to Berlingske.
Air France tar over
It is only a couple of days since Dilling and SAS’ CEO Anko van der Werff presented the upcoming new owners of SAS:
The American investment company Castlelake: 32.0 per cent The Danish state: 25.8 per cent Air France-KLM: 19.9 per cent Danske Lind Invest: 8.6 per cent Creditors who are settled in shares: 13.6 per cent.
But now SAS’ chairman says that he expects that both Castlelake and Lind Invest will want to sell out of SAS again in a few years.
In a press release on Tuesday evening, Air France announced that in two years from now the company will have the opportunity, and desire, to increase to a shareholding which gives them control over SAS.
Air France-KLM has a stake of just under 20 per cent in SAS. This is in order not to lose time on more extensive approvals from European competition authorities. Photo: Remy de la Mauviniere / AP
Also read: This happens with your Eurobonus points (+)
Midlands at 19.9 percent
In the first instance, the French-Dutch airline will only buy 19.9 percent of SAS.
The reason why they are not taking a bigger piece of SAS all now has to do with the fact that it was not possible in terms of time.
A stake of more than 20 percent would require the European competition authorities to make a much more thorough assessment before they could approve the purchase.
This was the explanation that Air France-KLM itself gave to Berlingske on Wednesday.
The new owners obviously didn’t have time to wait for that. SAS is in financial crisis and undergoing bankruptcy proceedings in the USA.
Believe in the SAS brand
Skandinaven Dilling hopes and believes that the SAS brand will be preserved as a subsidiary of Air France-KLM.
– I expect this, but my personal opinion does not count for much. Once they have a majority, they can do whatever they want, Dilling tells the Danish newspaper first, but then adds:
– But SAS has a very strong brand, which is exactly what has attracted Air France-KLM. At the same time, we have our Eurobonus program, which is also interesting. Therefore, I think we will see the SAS brand in the future as well.
Air France-KLM was created through a merger in 2004 between the then French state company Air France and the corresponding Dutch KLM. Today, the French state owns 28.6 percent of the shares, while the Dutch state has 9.3 percent.
Air France-KLM is listed on the stock exchanges in Paris and Amsterdam and has a stock market value of approx. NOK 36 billion.
Kastrup is an economic engine in Denmark. That is why the Danes are not letting go of SAS. Photo: TT NEWS AGENCY / Reuters
The Danes are hanging on
Dilling predicts to Berlingske that Air France-KLM will not own SAS alone. He thinks the Danish state will be around for a long time.
The Danes have both secured over 25 per cent of the shares in Nye SAS and they have got the other major owners to sign a shareholder agreement.
The content of this shareholder agreement is not known to the public. But most speculation is that it contains provisions which ensure that Denmark ensures that Kastrup airport remains the most important airport for SAS.
Kastrup is an economic engine
The whole rationale for the Danish state owning SAS, and probably will continue to do so for a very long time, is therefore about Kastrup.
It works both as an international hub where Danish business gets to and from all over the world, and it is an economic engine for the Copenhagen region. Over 1,000 companies operate at and around the airport.
The company København Lufthavne AS, which owns Kastrup, had over 22,000 employees before the pandemic. And not least: the Danish state owns 39 per cent of this airport company with a market value of close to NOK 60 billion.
Kastrup is therefore valued at almost double that of Air France-KLM, which is set to take over SAS.
2023-10-05 13:13:57
#SAS #top #management #predicts #owners #SAS #Air #FranceKLM #Danish #state
/cloudfront-eu-central-1.images.arcpublishing.com/prisaradio/5BUIQTSAON7334Z32K6TYLEFBE.jpg "GSD Candidate Keith Azopardi Poised to Unseat Fabian Picardo as Chief Minister, According to Gibraltar Poll")
