× Business BUSINESS MOTORING SHIPPING & LOGISTICS DR PESA FINANCIAL STANDARD Digital News Videos Health & Science Lifestyle Opinion Education Columnists Moi Cabinets Arts & Culture Fact Check Podcasts E-Paper Lifestyle & Entertainment Nairobian Entertainment Eve Woman Travelog TV Stations KTN Home KTN News BTV KTN Farmers TV Radio Stations Radio Maisha Spice FM Vybez Radio Enterprise VAS E-Learning Digger Classified Jobs Games Crosswords Sudoku The Standard Group Corporate Contact Us Rate Card Vacancies DCX O.M Portal Corporate Email RMS
×

France to become biggest Air France shareholder with capital hike

WORK LIFE
By Reuters | Apr 6th 2021 | 1 min read
By Reuters | April 6th 2021
WORK LIFE

France will contribute up to Sh506.9 billion ($4.7 billion) to a recapitalisation of Air France-KLM and more than double its 14.3 per cent stake in the airline group under plans announced on Tuesday with European Union approval.

The French government will convert a 3 billion euro loan extended to the group last year into a hybrid instrument and commit up to an additional 1 billion euros to a planned share issue, raising its stake in Air France-KLM to almost 30 per cent.

“This will make the state Air France’s biggest shareholder,” French Finance Minister Bruno Le Maire said on France Inter radio, calling the move a “sign of commitment” to the airline and its French jobs.

Under the deal with Brussels, Air France will give up 18 take-off and landing slots at Paris-Orly, amounting to 4 per cent of its current portfolio at the airport.

Their reallocation to competitors, however, will be limited to aircraft based at the airport with crews employed on local contracts under the terms negotiated by France.

“It was one of the sticking points of the talks,” Le Maire said. “We do not want any social dumping.”

The Dutch state does not plan to take part in the capital increase, Air France-KLM also said, and is therefore likely to have its 14 per cent holding diluted by the share issue.

Share this story
Traders feel effects of new Covid-19 rules
On March 26, President Uhuru announced reviewed Coronavirus measures.
China rejected Kenya's request for Sh32.8b debt moratorium
China is Kenya’s largest bilateral lender with an outstanding debt of Sh692 billion.
.
RECOMMENDED NEWS
Feedback