SAS Raising $1.3 Billion to Fund Carrier’s Survival Strategy
- Swedish, Danish governments to provide bulk of refinancing
- New business plan aims to boost productivity by a quarter
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Scandinavian airline SAS AB will raise 12 billion kronor ($1.3 billion) from investors including Sweden and Denmark as it battles to survive a global slump in travel.
The plan, also backed by the Wallenberg family, includes share sales, a rights offer and the issue of hybrid notes, as well as conversion of some 3.75 billion kronor of debt into equity, SAS said Tuesday. Norway was asked to participate but declined, according to Chief Executive Officer Rickard Gustafson.