SAS AB chose Air France-KLM and private equity firm Castlelake LP to anchor a $1.18 billion investment in the bankrupt Scandinavian flag-carrier, ending a five-month chase for new capital.
Air France-KLM will invest up to $144.5 million and receive as much as a 19.9% of SAS, with the option to take a controlling interest after two years under certain conditions, according to a statement Tuesday.
The deal promises to further the post-Covid consolidation of Europe’s aviation industry around Air France-KLM and two other major carrier groups, Deutsche Lufthansa AG and IAG SA. IAG is taking over Spain’s Air Europa, while Lufthansa has agreed to buy part of Italy’s state-owned ITA Airways, the successor to Alitalia.
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