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Etihad Airways to Sell Stakes in Air Seychelles

Etihad Airways to Acquire Air Seychelles

Etihad Airways, which acquired a 40 percent stake in Air Seychelles in 2012 as part of a strategic partnership agreement,  has sold its 40 percent holding in Air Seychelles to the Government of Seychelles, and will no longer be a shareholder in the Seychelles Government-owned airline.

The remaining 60 percent belonged to the government of Seychelles. The Secretary of State in the Ministry of Finance, Patrick Payet, on Thursday told reporters that Seychelles received a 79 percent discount on the total liability that Air Seychelles owes Etihad.

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.

"We are going to pay only 21 percent and this liability has been taken over by the government. Repayment will start from 2022 onwards. The second negotiation that we have is with the bondholders, where we are proposing to them to pay only $20 million," said Payet.

Payet added that Seychelles is still holding discussions with the Trade Development Bank - a bank in Africa - for a loan to be taken by the government to pay the bondholders and Etihad. Once negotiations are completed with the bondholders, details are expected to be relayed to the media.

"All of these liabilities will be in the government's books so Air Seychelles will have a clean sheet from the liability that they have," said Payet.

Source: Seychelles News Agency

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