Airport, Estonia, Investments, Legislation, Transport

International Internet Magazine. Baltic States news & analytics Tuesday, 21.05.2019, 12:01

Estonian state wants to get 66% of Estonian Air

Juhan Tere, BC, Tallinn, 29.04.2010.Print version
Estonia plans to take a 66% stake in Estonian Air through a rights issue, with the ownership of SAS declining to 34%, LETA/Eesti Paeevaleht reported. SAS is also representing the interests of local investment bank Cresco, which holds a 17% stake, in talks with the government, the newspaper said. An agreement may be signed this week, it added.

Economy ministry representatives confirm that the aim of the state is to get a majority holding in the company but they don’t wish to comment more.


The state may need to boost Estonian Air's share capital by "at least" 100 million kroons to 200 million kroons to increase its stake from 34%, the paper said.


It is clear now that no direct sales-purchase deal will take place, Eesti Paeevaleht writes, citing its own sources that the share capital of the aviation company would be increased so that the state would invest more money while SAS would not, boosting the state’s holding to 66% and reducing SAS’s to 34%. Currently Estonian Air belongs to SAS (49%), the Estonian state (34%) and investment bank Cresco (17%).


The state will invest in Estonian Air an estimated at least 100-200 million kroons.


The daily writes that most likely SAS wishes to distance from Estonian Air altogether but for the state, it would be useful if a big player at the aviation sphere like SAS stayed among owners of the firm since it would enable to get some benefits like cheaper fuel for planes.


As to the stake of Cresco, its head and Estonian Air’s council chairman Olev Schults said that they don’t participate at the talks between the state and SAS and Cresco won’t participate in nationalising Estonian Air.

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