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HomeEstoniaMinistry tasked with drafting plan for Nordica's privatization in 3 months

Ministry tasked with drafting plan for Nordica’s privatization in 3 months

Estonian Prime Minister Kaja Kallas said at the government’s press conference on Thursday that the Ministry of Climate has been given a task to prepare, within the next three months, a plan for the privatization of the Nordica airline now that the first round of the sell-off has failed.

Minister of Climate Kristen Michal proposed to the Cabinet on Thursday not to continue negotiations with the two bidders that made offers to purchase the state-owned Nordic Aviation Group (NAG), or Nordica. One of the received offers was financially inadequate and contained additional conditions that are unsuitable for the seller. The second offer also included unacceptable additional conditions for the shareholder, and the party making the offer did not provide sufficient information about the origin of the capital to finance the transaction.

“At the moment, the sell-off process has come to a halt because no suitable buyer was found in the first round. We took note of this information and the Ministry of Climate was tasked with working on it and coming back to the Cabinet within three months so that we can discuss further what the situation is and whether there are new prospects,” the premier told journalists.

She stated that Nordica will continue to operate until a buyer is found.

NAG and related companies currently employ 314 people in Estonia. Tax revenue for the state is approximately one million euros per month.

Source: BNS

(Reproduction of BNS information in mass media and other websites without written consent of BNS is prohibited.)

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