The Norwegian Government will convert half of its NOK1.2 billion ($115 million) rescue loan to Norwegian Group, the parent company of Norwegian Air Shuttle and Norwegian Air Sweden, into a 6.37% equity stake.
Filings from the Oslo stock exchange have shown that a total of 65,582,436 new shares will be issued by May 27. With one half of the $115 million rescue loan being converted into equity, the other half ($59 million) will be repaid in full. As a whole, the transaction will see a return for the Norwegian Government of $82.6 million, providing a $23.6 million profit that they will welcome with open arms.
The deal has been praised within the Norwegian government, more specifically by trade minister Cecilie Myrseth. They said:
“Norwegian is now in a position where it can repay the loan, after the reconstruction and the subsequent work that the company has put in. The agreement we have made with Norwegian gives the state a significant gain”
Currently, the top 20 shareholders in Norwegian control 53.7% of the airline, with the remaining 46.3% being controlled by a myriad of other investors. The key shareholders are Geveran Trading Company, Ltd. (14.53%), Folketrygdfondet (8.72%), DNB Asset Management AS (4.33%), and Ballyfin Aviation Limited (3.27%).
The deal goes a long way to highlight the strengthened financial position of Norwegian Air Shuttle, its cost-efficient operation and expansion in Europe. It also clearly shows that the government is confident in Norwegian’s progress and that the only way is up from here.
Founded in 1993, Norwegian Air Shuttle is a leading low-cost airline under the Norwegian Group. Renowned for affordable fares and quality service, Norwegian also includes sustainability in its list of priorities, aiming to reduce CO2 emissions by 45% by 2030.
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Aviation Reporter - With a keen eye for detail and a passion for air-travel, Harrison brings timely and insightful news to aviation enthusiasts and professionals alike as an Aviation Reporter
