Estonian ministers end potential Nordica sale talks but privatisation aim remains

Estonian ministers are suspending discussions with two companies which had sought to acquire the troubled carrier Nordic Aviation Group, although efforts to privatise the company will continue. The ministry of climate change says two entities had submitted binding purchase offers. But one has been determined to be “financially insufficient”, and both contained additional terms which could not be agreed. The ministry adds that there were also unanswered questions about the origin of funding for the second offer. Nordic Aviation Group, which operates under the Nordica brand, emerged in 2015 as the government looked to a successor for the collapsed flag-carrier Estonian Air. But the country’s national audit office found last year that the government did not have the necessary capabilities to serve as Nordica’s owner, and recommended that it sell the airline and its associated aircraft lessor Transpordi Varahaldus. Accountancy company Ernst & Young Baltic, in collaboration with Baltic law firm Fort, also presented conclusions of a special audit of Nordica to the Estonian parliament in February this year, which revealed concerns over several aspects of risk management within the carrier. This special audit had analysed management decisions taken over the course of January 2020 to July 2023.<br/>