Norwegian Air Shuttle will sell all of its 17.5% stake in banking company Norwegian Finans Holding - the owner of Bank Norwegian - to Cidron Xingu Limited for 2.22 billion Norwegian crowns (approximately $246.7 million), a statement from the airline said on Monday.
Norwegian Finans Holding is the owner of Bank Norwegian. Cidron Xingu Limited is indirectly controlled by Nordic Capital Fund IX and Sampo.
The deal will boost Norwegian Air's cash holding by 934 million Norwegian crowns, it added, boosting the balance sheet of the loss-making carrier.
In a statement, Geir Karlsen, acting chief executive of Norwegian, said: “The sale of the [Norwegian Finans] shares is part of Norwegian’s strategy to strengthen our core airline operations and focusing on the transition from growth to profitability. The cooperation between the airline and the bank has been a great success in the Nordic region for many years and will continue without the airline holding any shares in NOFI.”