AS Estonian Air, in which the SAS Group owns 49% of the shares, has resolved to conduct a rights offering of approximately EUR 7.3 million in order to provide for additional liquidity to fund the future cash flow and capital requirements of the company.
The SAS Group will, in order to seek to protect the value of its ownership stake in Estonian Air, participate in the rights offering and subscribe for its pro rata portion of the shares to be issued in the rights offering, by converting EUR 2.4 million of outstanding loans to Estonian Air into equity in the company and by a cash payment of EUR 1.2 million.
The other shareholders of Estonian Air, the Estonian state (34%) and AS Cresco (17%), have undertaken to participate in the rights offering and subscribe for their respective pro rata portions of the shares to be issued in the rights offering. The SAS Group intends to proceed with its plans to divest its interest in Estonian Air in accordance with Core SAS.
