(Finance) – Air France-KLM announces that it has started exclusive negotiations with Apollo Global Management for a capital injection of 500 million euros in favor of an operating subsidiary of Air France that produces spare engines for the fleet.
The proceeds from the transaction will allow the Group to partially redeem the bonds held by the state French, in accordance with the provisions of the temporary rules dictated by the EU to combat the pandemic, and at the same time facilitate the financing of future acquisitions.
The contributed capital will be accounted for as equity under IFRS standards, thus strengthening the financial statements of Air France-KLM and Air France.
The news of the recapitalization negotiations gave Air France-KLM shares wings on the Paris stock exchange, where it recorded a significant increase of 2.92% to 4.375 euros.