Air France-KLM in talks with Apollo over 500 million euros in cash injections

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PARIS – Air France-KLM said on Friday it had entered into exclusive talks with private equity firm Apollo for a capital injection of 500 million euros ($ 529 million) for one of its engineering and maintenance units to help pay off French state aid.

The proceeds of the transaction will enable Air France-KLM and Air France to partially redeem the permanent bonds of the French state, the airline said, adding that the agreement would not result in any operational or staff-related changes.

The airline has a current market capitalization of 2.73 billion euros.

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A spokesman for Air France-KLM said the buyout firm would not take an equity stake in the airline as a result of the agreement with Apollo Global Management, a “purely financial” operation.

Air France-KLM said in February that it planned to raise up to 4 billion euros to repay aid received during the epidemic.

The airline said this month that it was considering measures such as a capital increase and a semi-equity instrument to speed up payments to the French state, its top shareholders.[nL5N2WX115[nL5N2WX115[nL5N2WX115[nL5N2WX115

Shipping firm CMA CGM announced this week that it would acquire a large stake in Air France-KLM.

(1 = 0.9449 euros) (Reporting by Dominic Vidalon; Editing by Tassilo Hummel; Editing by Edmund Blair)

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