SAS Scandinavian Airlines (SK, Copenhagen Kastrup) has divested its 37.5% stake in Air Greenland (GL, Nuuk) to the Government of Greenland, a move it described in a statement dated May 29 as "the result of several years of discussions and negotiations, ending an era of ownership which dates back over 50 years."
SAS established the airline as Grønlandsfly (Nuuk) together with a former Danish mining company, Kryolitselskabet Øresund, in November 1960.
Under the agreement, which closed on May 29, the Greenlandic government will pay DKK277 million kroner (USD41.33 million) in cash for the Scandinavian carrier's 37.5% shareholding in the airline group, which also includes the charter carrier Greenland Air Charter. The deal raises Nuuk's stake to 75%, while the Danish state retains 25%.
The transaction price was "slightly above the book value", SAS said, "resulting in a marginal capital gain".
Greenland has mulled nationalising its flag carrier since September 2018, and in late April 2019, the Greenlandic newspaper Sermitsiaq cited a report by a Danish and Greenlandic government working group as saying that a price of DKK461 million kroner (USD69.1 million) had been set for the combined SAS and Danish stakes. It added that the company was valued at USD110.4 million.
The sale is positive for SAS, DNB Markets analyst Ole Martin Westgaard told E24, as it strengthens its liquidity. Only the day before, on May 28, SAS published a 2Q loss before tax of SEK1.2 billion krona (USD125 million), down SEK728 million (USD75.9 million) on 2Q18, which it blamed on a recent pilot strike, rising fuel prices, and a weak Swedish krona.
Air Greenland currently operates a fixed-wing fleet of seven Dash 8-200s, one A330-200 and Beech (twin turboprop) King Air 200 each, plus a fleet of 19 helicopters.
