The government of Greenland has purchased a shareholding that the Scandinavian airline has held for more than half a century.
After months of speculation, SAS has sold its 37.5% stake in Air Greenland to the government of Greenland, in a transaction the Scandinavian airline says is “a result of several years of discussions and negotiations, ending an era of ownership which dates back over 50 years”.
Under the agreement, which was closed on May 29, Greenland’s government will pay DKK 277 million (€37.1 million) in cash for SAS’s 37.5% shareholding in the Nuuk-based group. SAS has been a part of the group of owners for more than half a century.
“The transaction price is slightly above the book value, resulting in a marginal capital gain for SAS,” the Scandinavian carrier said in a statement.
Years of cooperation
“SAS would like to thank Air Greenland and its other shareholders – the Government of Greenland and the Danish State – for the good cooperation over the years and wish the airline all the best for the future,” SAS added.
The deal makes Greenland a 75% shareholder in its airline, while Denmark keeps, for now, its 25% stake. The group also has a hotel, Hotel Arctic, and a travel agency, Greenland’s Travel Agency.
Air Greenland posted a profit before tax for 2018 of DKK 80.8 million (€10.85 million), up 12% on the previous year, boosted by revenues of DKK 1.37 billion from a record 431,000 passengers.