MARCH 31ST, 2015
Finnair acquires Flybe Nordic on an interim basis – ownership discussions with Staffpoint and GWS continue
Finnair has acquired Flybe UK Ltd’s 60% ownership of Flybe Nordic for a transaction price of 1 euro, and Flybe Nordic will transfer to Finnair’s ownership on an interim basis. The transaction has been closed today, 31 March 2015. Finnair continues discussions about the continued ownership of Flybe Nordic. Finnair and StaffPoint Holding Ltd and G.W. Sohlberg Ltd. signed on 7 January 2015 a Memorandum of Understanding about an arrangement according to which Staffpoint and GWS would own together 60% of Flybe Nordic shares.
“Last November Finnair and Flybe UK decided to discontinue their Flybe Nordic co-operation and agreed, that Flybe UK will sell its 60% ownership in the company to a potential new majority shareholder or Finnair. While the discussions with Staffpoint and GWS still continue, Finnair will now acquire Flybe UK’s share of Flybe Nordic. We hope to sign a new share purchase agreement in the coming months,” says Pekka Vauramo, Finnair CEO.
Flybe Nordic owns fully the Finnish subsidiary Flybe Finland, which operates with a total of 26 ATR and Embraer aircraft a substantial part of Finnair’s domestic and European routes as purchase traffic. Flights operated by Flybe Finland will continue normally.
“Finnair aims to find together with its partners a business model that would enable the development of regional flying in a financially sustainable way. We will take an important step to this direction at the beginning of May, when all routes operated by Flybe Finland at their own commercial risk will become a part of Finnair’s contract flying arrangements, as we have communicated earlier. Flybe Finland has also implemented several internal measures to improve the company’s financial position,” says Vauramo.
The ownership change of Flybe Nordic does not have any immediate impact on Finnair’s result. Finnair continuously monitors the balance sheet valuation related to the Flybe Finland cooperation and will inform about possible financial impacts in more detail in connection with its interim review on 7 May, 2015.
Finnair’s earlier stock exchange releases concerning the Flybe Nordic transaction have been published on 12 November 2014, 7 January 2015 and 29 January 2015.