2nd UPDATE: Norway Seeks Approval To Sell 14.3% Stake In SAS
02 April 2011 - 1:05AM
Dow Jones News
Norwegian Minister of Trade and Industry Trond Giske Friday
sought parliamentary approval to sell the government's 14.3% stake
in Scandinavian airline SAS AB (SAS.SK).
The minister also requested approval to sell maritime contractor
Secora AS and property company Entra Eiendom AS, in which the
Norwegian government has full ownership.
"We want to sell the state's ownership in SAS, we want to sell
Secora and we no longer see the reason why the state should have an
ownership in Entra," he told reporters in Oslo.
The minister declined to comment on whether the government had
been approached by potential bidders for SAS, but said it was
looking for an industrial solution. Norway controls SAS jointly
with the governments of Sweden and Denmark, which hold stakes of
21.4% and 14.3%, respectively.
"The state is in no financial trouble so we are in no hurry to
sell our ownership in SAS," Giske said, adding the Norwegian
government was seeking parliamentary approval to sell its stake in
order to be able to act if there was a window of opportunity.
Sweden and Denmark both have authority to reduce their stakes in
the airline.
"The plans to decrease ownership in SAS at a suitable time stand
firm," said Victoria Ericsson, press secretary to Peter Norman,
Sweden's minister for financial markets.
The Swedish ministry of finance, which is responsible for
questions concerning state-owned enterprises, had no comment to the
Norwegian move.
Soren Gregersen, head of communication at the Danish Ministry of
Finance said: "What we have said earlier also is that if the right
possibility comes along we are open as well. What is right depends
on whether the alternative is better for SAS and the Danish society
at large, and of course that the offered price is reasonable.
Sydbank analyst Jacob Pedersen said the Norwegian move didn't
necessarily mean that a deal with another airline was any closer,
adding it merely would clear a technical hurdle to proceed with the
divestment plan.
"I would expect a coordinated sale by Norway, Denmark and
Sweden, not incremental stake sales," he said.
According to Pedersen, the only way an industrial buyer would
get critical mass was by acquiring the countries' entire combined
holding of 50%.
German airline Deutsche Lufthansa AG (LHA.XE), which previously
has been identified as a potential bidder, declined to comment, but
said two weeks ago that it wasn't pursuing mergers and acquisitions
at the moment.
Giske said he wanted Norway's parliament to give the state the
right to participate in potential equity increases in Kongsbergs
Gruppen ASA (KOG.AS), of which it owns 50.001%, and Yara
International ASA (YAR.OS), in which it holds 36.21%. He also said
the government would increase investments in state-owned investment
group Investinor.
At 1315 GMT, SAS shares traded up 4.1% at 22.90 Swedish kronor,
while shares in Yara traded up 2.6% at 287.60 Norwegian kroner and
shares in Kongsbergs Gruppen traded up 1.3% at NOK155.50.
-By Katarina Gustafsson, Dow Jones Newswires +46-8-5451-3097;
katarina.gustafsson@dowjones.com
(Anna Molin in Stockholm and Kirsten Bienk in Frankfurt
contributed to this article.)