Air France-KLM in talks with Apollo on 500 mln euro cash injection

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

“The proceeds of the transaction would enable Air France-KLM and Air France to partially redeem the French state perpetual bonds,” the airline said, adding that the deal would not cause any operational or workforce-related changes.

The airline’s current market capitalisation stands at 2.73 billion euros.

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

The airline said this month it was considering measures such as a capital increase and quasi equity instruments to speed up payments to the French state, its top shareholder. [nL5N2WX115

Shipping firm CMA CGM announced this week it would take a major stake in Air France-KLM.

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