Apollo Global Management, the chief investor that helped take Sun Country Airlines public two months ago, is selling part of its stake in the carrier, the Minneapolis Star-Tribune reported.
Minneapolis is the headquarters for Sun Country.
Apollo, a private equity firm, is looking to lower its stake in the airline from 72 percent to 60 percent.
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The Star-Tribune reported that in a filing with securities regulators late Monday, Sun Country said Apollo Global Management, which has owned the airline since 2018, is planning a secondary offering that would leave it with 61.1 percent ownership.
A spokeswoman for the airline deferred comment to Apollo, calling it “their news.” A spokesman for Apollo declined to comment.
Rather than be reinvested in the airline — like the funds raised during the company’s initial public offering in March — the proceeds from the sale will go directly in the coffers of Apollo’s investment funds. The Star-Tribune also noted that the offering includes an optional sale for Apollo and certain underwriters that could further reduce Apollo’s stake to 59.5 percent.
But that’s not necessarily a bad thing.
The offering would place up to 6.9 million more of Sun Country’s 57.1 million shares with the public. Based on Monday’s closing stock price of $39.74, that would yield $274 million to Apollo before commissions and fees.
Sun Country added 16 new routes in late January, about two weeks before the Initial Public Offering.
