Norway's Ministry of Trade, Industry, and Fisheries announced on June 4 the sale of its entire 6.26% stake in Norwegian Group, the parent of Norwegian Air Shuttle AOC and Norwegian Air Sweden AOC.

The government agreed to sell the shares at a price of NOK13.60 kroner (USD1.35) per share and will pocket NOK891.9 million (USD88.5 million) on completion of the transaction. This will translate to NOK276 million (USD27.4 million) net profit.

The news about the divestment comes less than a month after the ministry converted half of its USD115 million COVID-era loan to Norwegian Group into equity. The group agreed to repurchase 50% of the government's shares in the convertible bond loan worth USD59 million.

"The state has been clear from day one that we do not want to be a long-term player in Norwegian. The goal for the state has been to achieve a commercial return. I am pleased that the state, through its participation in the loan, has contributed to the company's survival and the maintenance of a good aviation offer in Norway," said Minister of Trade and Industry Cecilie Myrseth.

Although the government sold its shares, it still holds the group's bonds.