Finance Minister Nikolai Wamen said on Friday that Denmark is ready to inject more capital if it cancels the debt owed by the deficit airline SAS and private investors also contribute.
Shares of carriers struggling to cut costs and trying to avoid pilot strikes have skyrocketed 45% in response to the news. Then reduced some profits to trade 25% higher early Friday afternoon.
After meeting with MPs, Mr. Wamen told reporters, “I imagine ownership will be shared somewhere between 22% and 30%.” The state owns 21.8 pc of SAS.
“The majority of Congress has a commitment to continue to take responsibility and contribute to the solution, but now all other parties have to share their share as well,” he said. Told.
The Treasury said in a statement that lawmakers had agreed to accept write-downs, debt conversions and inject new shares in response to the participation of private investors.
“If SAS doesn’t succeed in convincing the market that it has a viable and profitable future, it won’t get any money from the market or from the Danish state,” said Conservative Rasmus Jarov. Said.
Government support also relies on SAS being able to maintain its influence over various decisions to maintain a strong presence at Danish airports. This is important to the Danish economy and is to ensure good travel connections to other parts of the world. Mr. Wamen said.
Copenhagen Airport is the airline’s largest hub and is strategically and economically important to Denmark.
The demand for state influence is likely to discourage many investors, according to Sidbank analyst Jacob Pedersen.
“I definitely don’t think this will make it easier to save SAS, or a large consortium that might have wanted to join SAS and make changes would scream and run away,” he said. Stated.