Etihad Airways to sell stakes in Air Seychelles
Seychelles had reached a deal to take full ownership of Air Seychelles, following talks with Etihad Airways.
April 30, 2021: Seychelles had reached a deal to take full ownership of Air Seychelles, following talks with Etihad Airways in which the UAE-based airline agreed to relinquish the 40 percent stake it holds at a steep discount, as per Seychelles News Agency.
Air Seychelles had owed $72.3 million to Etihad; with the 79 percent write-down, Seychelles will pay $11.34 million. A total of $71.5 million is still owed to bondholders.
Etihad Airways entered a partnership with Air Seychelles in 2012, when it bought a 40 percent share in the national airline. The remaining 60 percent belonged to the government of Seychelles – a 115-islands in the western Indian Ocean.
Under the original deal, the funds provided by bondholders would be split between the United Arab Emirates (UAE) carrier and partner airlines. Each company assumed the responsibility to pay off its debt before the bond reached its due date in 2021.
Meanwhile, a new board has been set up for Air Seychelles to be headed by Nane Nanty as the chairperson with Alan Mason as its co-chairman.
