KLM has agreed to buy back a further part of the Dutch Government's shareholding in the airline, which will reduce the state's stake in its national carrier down to 25%.
The cost of the share deal is expected to run to around DFl1 billion ($590 million), which KLM will fund from cash. The airline group now holds around DFl3 billion in free cash, helped by its agreement to sell back part of its holding in partner Norhwest Airlines, which is due to net around DFl700 million.
The Government, which had held 38.2% of KLM's shares, says that the deal "-is based on the desire" of both parties to achieve "further privatisation of the company". It says, however, that no further share sale will take place before April 1998.
Source: Flight International
