SAS’ revised recapitalization plan approved by European Commission
17 August 2020, 21.10 CEST
The European Commission has today declared the participation of the Danish and Swedish governments in the SAS’ recapitalization plan compatible with applicable EU state aid rules[1].
As announced on 14 August 2020, the Board of Directors of SAS AB (“SAS” or the “Company”) has approved a revised recapitalization plan to tackle the effects of the COVID-19 pandemic (the “Recapitalization Plan”), which amongst others has the support of the Company’s two largest shareholders, the governments of Sweden and Denmark (jointly the “Major Shareholders”).
The European Commission has today declared the participation of the Major Shareholders in the Recapitalization Plan compatible with applicable EU state aid rules. The European Commission has approved the participation of the Major Shareholders on certain conditions, including bans on payment of dividends, aggressive commercial expansion and acquisitions above certain thresholds, as well as limitations on management remuneration. These conditions will be released as the Major Shareholders’ aid to the Company is repaid.
The European Commission’s approval is further based on the participation by private investors in the Recapitalization Plan, including the conversion of SAS MSEK 1,500 subordinated perpetual floating rate capital securities and the SAS MSEK 2,250 senior unsecured fixed rate bond due November 2022.
The conditions of the European Commission’s approval will be further described in the prospectus to be made public on or around 1 October 2020.
For further information, please contact:
SAS press office, +46 8 797 2944
Michel Fischier, VP Investor Relations, +46 70 997 0673
Advisors to the Company
Skandinaviska Enskilda Banken AB is financial advisor to SAS, Global Coordinator and Bookrunner in connection with the recapitalization plan.
Mannheimer Swartling Advokatbyrå AB and Davis Polk & Wardwell London LLP are legal advisors to SAS.
Skandinaviska Enskilda Banken AB (publ), Danske Bank A/S, Danmark, Sverige Filial and Swedbank AB (publ) have been appointed Solicitation Agents. Danske Bank A/S, Danmark, Sverige Filial and Swedbank AB (publ) are Joint Bookrunners in the Rights Issue.
The information was submitted by Michel Fischier for publication on 17 August 2020 at 09:10 p.m. CEST.
IMPORTANT INFORMATION
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[1] The Treaty on the Functioning of the European Union Article 107(3)(b) and the COVID-19 Temporary Framework for State Aid Measures