Finnair has previously held negotiations on ownership arrangements concerning Nordic Regional Airlines. Finnair, StaffPoint and Kilco Oy have now agreed on transactions whereby 60 percent of the shares in Nordic Regional Airlines would be transferred to the ownership of StaffPoint and Kilco. The latter enters the arrangement in lieu of Oy G.W. Sohlberg Ab (GWS), which was previously part of the negotiations. Kilco Oy is an investment company owned by the family of StaffPoint CEO Mika Kiljunen and it is also one of the owners of StaffPoint.
The transaction requires approval by the Finnish Competition and Consumer Authority. Provided that the arrangement is implemented, StaffPoint would hold 45% of the shares in the company, Kilco 15% and Finnair 40%. The transaction price, as previously disclosed, is one euro.
"We are satisfied that the negotiations reached a conclusion and that Norra and its board of directors are now free to keep developing the company and improving the profitability of regional flying," says Finnair CEO Pekka Vauramo.
"We have been analyzing the industry for quite some time and see potential there. With our expertise in human resources, we want to contribute to the viability of the industry. As shareholders, we are also able to use our expertise to generate added value to Norra," says StaffPoint Group CEO Mika Kiljunen.
Nordic Regional Airlines owns the entire share stock in its Finnish subsidiary Nordic Regional Airlines Oy (Norra). Norra operates a fleet of 26 ATR 72 and Embraer planes on domestic and European routes. The company previously operated under the name Flybe Finland Oy.
StaffPoint is a Finnish human resources company providing staffing and recruiting services, coaching and innovative HR software solutions. The company employs over 15,000 experts on an annual basis.
On 7 January 2015, Finnair signed a Memorandum of Understanding with StaffPoint and GWS on a transaction whereby StaffPoint and GWS would jointly acquire a 60 percent stake in Flybe Nordic (presently Nordic Regional Airlines AB) operated as a joint venture by Finnair and Flybe Ltd. While the negotiations protracted, Finnair acquired Flybe UK’s stake on 31 March 2015, and Flybe Nordic was transferred entirely to Finnair’s ownership. Finnair has issued stock exchange releases on the Norra transactions on 12 November 2014, 7 January 2015, 29 January 2015, 31 March 2015 and 6 August 2015.