Estonia, SAS sign letter of intent on Estonian Air

10.05.2010, 15:59

Estonia signed a preliminary agreement with SAS AB on changing the ownership structure of AS Estonian Air, its national airline, the Baltic country’s economy ministry said, reported Bloomberg.

Economy minister Juhan Parts signed a letter of intent with SAS Vice Presidents’ Benny Zakrisson and Mats Loennkvist in Tallinn today, the ministry said in an e-mailed statement. The sides will comment on details after an agreement is completed, it added.

The government, which owns 34 percent of the airline, plans to take control of Estonian Air through a rights offer that would dilute stakes held by SAS AB and the investment bank AS Cresco, an economy ministry spokesman said last month.

SAS has said it wants to divest its 49 percent stake in Estonian Air and Estonian media reported that Cresco owner Olev Schults plans to sell the bank’s 17 percent stake if the government acquires control of the carrier.