Finnair sells its entire stake in Norwegian

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Finnair has sold its entire shareholding in budget carrier Norwegian for €53 million ($69 million), allowing it to record a gain of €34 million from the deal.

The Finnish carrier agreed to take the shareholding, about 4.7% of Norwegian, in 2007.

It acquired the shares as part of its divestment of Swedish budget subsidiary FlyNordic to Norwegian. Finnair had originally agreed to take 5% of Norwegian with the option for another 5%.

Finnair says that, following the divestment, it will record the income in its accounts for the second quarter of 2013.

"The proceeds from the sale will be used for the development of the Finnair and implementation of its growth strategy," it states.

Finnair held nearly 1.65 million shares in Norwegian. The transaction increases Finnair's shareholders' equity by about €16 million compared with the figure at the close of 2012.

Norwegian's investor status for February 2013 showed that Finnair was the second-largest shareholder behind HBK Invest. Finnair has not disclosed the buyer of its stake.