Since the start of the travel restrictions, SAS has implemented a broad range of measures to reduce costs as a result of the decline in demand, which is not expected to return to pre Covid-19 levels before 2022. The Board of Directors of SAS has decided to take some measures aimed at reducing the economic impact derived from the drop in demand. The plan includes approximately SEK 4 billion in efficiency improvements in all parts of the Group by 2022. These measures will, however, not be sufficient to help restore the Group’s equity position to the levels seen before the Covid-19 pandemic arrived.
In light of this, the board has decided on a recapitalization plan that is supported by the Company’s two largest shareholders, the governments of Sweden and Denmark, and the third-largest shareholder, the Knut and Alice Wallenberg Foundation. The Plan is meant to restore equity by SEK 14.25 billion and secure approximately SEK 12 billion of new funding through the following steps:
- Directed issue of common shares in the amount of approximately MSEK 2,006 to the Major Shareholders;
- Rights issue of new common shares available to eligible shareholders in an amount of approximately MSEK 3,994, expected to be covered by subscription undertakings and underwriting commitments corresponding to 81,5% of the total amount of the rights issue;
- Directed issue of new hybrid notes in a total amount of MSEK 6,000 to the Major Shareholders;
- Conversion of MSEK 2,250 senior unsecured fixed-rate bond due November 2022 into common shares; and
- Conversion of MSEK 1,500 subordinated perpetual floating rate capital securities into common shares.
“The Board believes that the Recapitalization Plan presents a balanced way forward given the magnitude of the conditional burden sharing measures,” said Carsten Dilling, chair of the SAS Board of Directors. “Along with the Group’s revised business plan, the Recapitalization Plan will enable us to withstand this crisis and return as a profitable and sustainable Scandinavian infrastructure provider.”
SAS is committed to its sustainability agenda in line with expectations from the Swedish and Danish governments.
