Air France-KLM Group (AFRAF.PK) announced on Wednesday the acquisition of a 19.9 percent non-controlling stake in SAS AB, with plans for extensive commercial cooperation starting September 1.Air France-KLM noted that this strategic move follows successful receipt of regulatory approvals in both Europe and the United States.As highlighted earlier, Air France-KLM and SAS have entered into comprehensive interline and codeshare agreements to integrate their hubs and networks. These agreements, which include reciprocal loyalty program benefits, will take effect from September 1.On the same date, SAS will join the SkyTeam alliance, where Air France and KLM are prominent founding members.Benjamin Smith, CEO of the Air France-KLM Group, remarked, “With SAS joining our network, customers of SAS, Air France, and KLM will benefit from a greater number of destinations through codeshares. SkyTeam will instantly gain a vital new member.”The transaction was executed by Air France-KLM Group in collaboration with a consortium of investors, which includes the Danish State.The Consortium now holds an aggregate 86.4 percent stake in the reorganized SAS AB, having invested a total of $1.2 billion in the company through the subscription of $475.0 million in common shares and the purchase of $725.0 million in senior secured convertible notes.Air France-KLM Group’s own investment in SAS AB totals $144.5 million.Furthermore, it has been agreed among the Consortium members that Air France-KLM’s stake may increase to a controlling shareholding after a minimum of two years, contingent upon regulatory conditions and financial performance criteria.The material has been provided by InstaForex Company – www.instaforex.com
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