Norwegian Government Sells Entire Stake in Norwegian Group

Norway’s Ministry of Trade, Industry, and Fisheries has sold its entire 6.26% equity stake in Norwegian Group, the parent company of Norwegian Air Shuttle and Norwegian Air Sweden. The transaction, announced on June 4, marks the government’s full exit as a shareholder.

The shares were sold at NOK 13.60 (USD 1.35) each, generating NOK 891.9 million (USD 88.5 million) in gross proceeds and a net profit of NOK 276 million (USD 27.4 million). The divestment follows the ministry’s recent conversion of half of a USD 115 million COVID-era loan into equity, as part of a broader effort to stabilize the airline during the pandemic.

The Norwegian government had made it clear from the outset that its involvement in Norwegian was temporary and commercially motivated. “The state has been clear from day one that we do not want to be a long-term player in Norwegian,” said Trade and Industry Minister Cecilie Myrseth. “Our goal was to achieve a commercial return while helping preserve vital air service in Norway.”

The government had previously agreed to let Norwegian repurchase 50% of the shares tied to a convertible bond loan worth USD 59 million. With this sale, the government has exited its equity position but still retains bonds in the airline group.

Norwegian Group has stabilized financially in recent years after a major restructuring, and the government’s exit signals increased confidence in the airline’s market position as it continues to rebuild capacity across Europe and Scandinavia.

Related News: https://airguide.info/category/air-travel-business/airline-finance/

Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com