PARIS (Reuters) – Air France-KLM announced on Friday that it was in exclusive discussions with the investment fund Apollo Global Management with a view to injecting 500 million euros into the capital of an Air France spare engine subsidiary. France.
In a statement, the Franco-Dutch airline said that the proceeds of the transaction will allow it to partially repay the aid from the French state and reduce the cost of its debt.
“The structure will not result in any operational and social changes,” the group said, adding that the transaction will not impact the contracts of its employees.
Contacted by Reuters, a spokesperson for Air France-KLM clarified that the agreement with the Apollo fund would not result in it taking a stake in the group’s capital, the operation being “purely financial”. .
After having received in 2020 an initial aid of 7 billion euros from the French State to deal with the consequences of the COVID-19 epidemic, the air carrier benefited, after the green light from the European Commission, from new support from France of up to 4 billion for its recapitalization.
In return, the company had to give up slots at Orly and cannot take more than 10% of the capital of another company until the state aid has been reimbursed at least 75%.
Air France-KLM announced on Wednesday that it is forming a strategic partnership with CMA CGM in air freight which will see the family maritime transport group become a reference shareholder by taking up to 9% of the capital of the Franco-Dutch group of airlines.
This equity investment would take place within the framework of a possible capital increase of up to four billion euros as announced last February by Air France-KLM with the aim of reimbursing the aid paid by France and the Netherlands.
On the Paris Stock Exchange, Air France-KLM gained 3.60% to 4.404 euros around 8:40 GMT.
(Report Elena Vardon, Dominique Vidalon and Laetitia Volga, edited by Kate Entringer)
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