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State of Finland preparing to participate in Finnair’s planned share issue

Government Communications Department
Publication date 6.10.2023 8.05
Press release

On 6 October 2023, Finnair Plc announced that it was planning a share issue to ensure Finnair’s ability to implement its strategy in the new operating environment following the pandemic and the war of aggression against Ukraine and to support the company’s long-term growth. Finnair’s Board of Directors will propose that authorisation be granted for the arrangement at an Extraordinary General Meeting to be convened in October 2023.

The State of Finland currently owns around 55.8 per cent of Finnair’s shares and votes. The State of Finland supports Finnair’s plan and is preparing to participate in the planned share issue in proportion to its shareholding. The State of Finland expects to participate by offsetting the aggregate subscription price against a corresponding amount of the principal of the capital loan in accordance with the capital loan agreement concluded between the State and the company. From a shareholder point of view, the State considers the planned arrangement and the strengthening of the company’s balance sheet position to be appropriate for both the company and all of its shareholders. 

“The effects of the recent crises on air transport as a whole, and therefore also on Finnair, one of the strongest operators in the sector, have been substantial. In the State’s view, the planned transaction is financially justified for it as a shareholder. The arrangement makes it possible to clarify the company’s balance sheet structure, which supports its long-term growth and improves its ability to make the necessary investments. As a responsible, long-term owner, the State aims to ensure that Finnair has the conditions to carry out its business operations in the future, too,” says Minister Anders Adlercreutz, who is responsible for state ownership steering.

The Ministerial Committee on Economic Policy has expressed its support for the State’s participation in the arrangement and the government plenary session has granted the necessary authorisation.

Inquiries: Maija Strandberg, Senior Ministerial Adviser, Ownership Steering Department of the Prime Minister’s Office, tel. +358 50 407 8423, [email protected]