Norway: Norwegian Air sells stake in bank subsidiary for $245M

Norwegian Air Shuttle will sell its entire 17.5% stake in banking company Norwegian Finans Holding to Cidron Xingu Limited for 2.22 billion Norwegian crowns ($246.7 million), the airline said on Monday.

Norwegian Finans Holding is the owner of Bank Norwegian. Cidron Xingu Limited is indirectly controlled by Nordic Capital Fund IX and Sampo.

The European aviation sector has been struggling with overcapacity, leading some airlines to offer loss-making fares and a few smaller carriers to go bust. “The sale of the NOFI shares is part of Norwegian’s strategy to strengthen our core airline operations and focus on the transition from growth to profitability,” Norwegian Air’s acting chief executive Geir Karlsen said in a statement. While the deal could help the airline refinance a €250 million bond maturing in December, some analysts said the company may need to raise more cash from shareholders at a later time.

Full Content: Financial Times

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