Broadway

Complete News World

Report: Investors want to take over troubled SAS

Report: Investors want to take over troubled SAS

It appears that a group of foreign investors are interested in joining the airline. And SAS is in dire need of new money.

A few weeks after starting his work, Anko van der Werf spoke clearly and caused an uproar. “SAS fights to survive”, he said publicly last October. And he went on at the time, you have to do things drastically differently in the airline.

He continues to deliver his difficult message. Our cost structure is […] Something we need to change drastically. “We have to be quite competitive to stay relevant,” Van der Werf said this week when presenting second-quarter results. Above all, he is referring to employees and their representatives, who are not yet ready to make the compromises that SAS management wants.

Infusion of new money

At the same time, the head of SAS explained that the debt-laden airline needs fresh capital. On the one hand, they want to convert 20 billion crowns (1.9 billion euros) of debt into equity, according to van der Werve. On the other hand, they plan to raise 9.5 billion kroner in new capital in order to secure liquidity. But the two largest shareholders are not yet convinced of the plan and are reluctant to agree to it: the governments of Sweden and Denmark, each holding 21.8 percent of the shares.

It seems that a group of foreign investors wants to help. According to Dagens Industri, it has already hired consultants to represent it in talks with SAS. It will inject capital. In turn, the existing shareholders will lose their leverage by diluting the capital.

Norway has already withdrawn

This could be beneficial for the governments of Sweden and Denmark, which have had to lend a helping hand to the airline during the pandemic. Government Norway sold its stake in SAS in 2018.

Lufthansa has also been mentioned repeatedly as a potential investor in SAS in the past. The German Airlines, however, is currently in business with ITA Works. SAS does not comment on rumors.