Scandinavian Airlines (SAS) flights are listed at Copenhagen Airport Kastrup in Copenhagen, Denmark on July 3, 2022. Portal/Andrew Kelly/File Photo Acquire License Rights
COPENHAGEN, Oct 4 (Portal) – Shares in SAS (SAS.ST) plunged 95% at the open on Wednesday after the Scandinavian airline announced new major shareholders late on Tuesday in a restructuring that would see it that the group will be delisted from the stock exchange and its existing ownership shares will be deleted.
SAS said US investment firm Castlelake and Air France-KLM (AIRF.PA) would become new major shareholders in the airline alongside the Danish state following the bankruptcy process.
Scandinavia’s largest airline filed for bankruptcy in the U.S. in mid-2022 after struggling for years with high costs and low customer demand caused by the pandemic.
Castlelake will take a stake of about 32%, Air France-KLM will own about 20%, Lind Invest will own 8.6% and the Danish state will hold about 26%, SAS said.
The remaining equity capital is expected to be distributed among creditors, the airline said.
SAS shares, which had already fallen in recent years, fell 79% to 0.06 Swedish krona ($0.0054) at 07:42 GMT.
($1 = 11.0853 Swedish krona)
Reporting by Louise Breusch Rasmussen in Copenhagen, Anna Ringstrom in Stockholm, editing by Terje Solsvik
Our standards: The Trust Principles.
Acquire license rights, opens new tab