SAS sells Spanair and airBaltic

The SAS Group (SAS) has reached an initial agreement with a group of investors from Catalonia, for their incorporation as new majority shareholders into SAS' subsidiary Spanair.
The investors are led by the Consorci de Turisme de Barcelona (the "Consorci") and Catalana d'Iniciatives ("Iniciatives").

In the proposed transaction structure, SAS will remain as a core shareholder in Spanair, and act as its industrial partner to assist in the implementation of the Strategic Plan and further strengthen Spanair's position in Spain and its position as leading carrier in Barcelona.

The agreement is conditioned to the completion of the ongoing final negotiations, and SAS the Consorci and Iniciatives have the target to sign a definitive agreement before January 31, 2009.

According to a press release, the parties have agreed not to comment on the possible terms and conditions of such a transaction until an agreement has been finalized.

Also announced on Friday was SAS' decision to sell its 47,2% holding in airBaltic to the management of airBaltic.

The sales price amount to MLAT 14 (approx MSEK 220) will be paid in cash no later than 31. January 2009. The transaction results in a capital gain of approximately MSEK 175 for the SAS Group. SEB Enskilda has been acting as financial adviser for SAS Group in this transaction.

"This divestment is in line with our strategy not to maintain minority holdings in our airlines. We are pleased to have built airBaltic to a strong Baltic airline in SAS ownership and we are confident that the new owners will continue to develop the company in a positive direction", says Mats Jansson, SAS Group President & CEO.

"We are very pleased that we have reached a solution for the company's ownership structure so we can continue and develop the company for the best of Baltic region. We are also happy to announce that airBaltic will continue its commercial cooperation with the SAS Group between Riga and Scandinavia", says Bertolt Flick CEO of airBaltic.