Scandinavian budget carrier Norwegian is selling out of Norwegian Finans Holding, the parent company of Bank Norwegian, divesting its entire shareholding for NKr2.2 billion ($246 million).

The carrier says it intends to "strengthen" its core airline operation through the divestment.

It states that the transaction will have a net cash effect of NKr934 million and a "positive effect" on book equity of NKr196 million compared with the figure at 30 June this year.

Norwegian Finans Holding is owned by various institutional and private investors and the airline is the largest owner with a share of about 17.5%.

Its Bank Norwegian division started operating in 2007 and offers digital banking services including loans, accounts and credit cards to retail customers. The company has a presence across the Nordic market.

Norwegian states that it is selling the shareholding to a company it identifies as Cidron Xingu, which is indirectly controlled by Nordic Capital and Finnish financial firm Sampo.

The stake will be sold for NKr68 per share.

"Co-operation between the airline and the bank has been a great success in the Nordic region for many years," says acting Norwegian chief Geir Karlsen.

Norwegian says nearly 10% of the share in Norwegian Finans Holding has already been sold with the rest expected to be transferred on 26 August.

Once the entire sale is completed Nordic Capital will have 11.14% of Norwegian Finans Holding while Sampo will have 6.33%.