The Belgian regions of Flanders and Wallonia are joining forces in an effort to keep Lineas, the main rail freight operator in the country, alive. The two regions, with a couple of Belgian banks, will provide a total of 46 million euros to keep the company financially afloat.
Lineas has been struggling financially, mostly due to the aftermath of the COVID-19 pandemic. At the beginning of 2022, the company started a restructuring procedure which entailed a new CEO. To complete the transition and get back on track, Lineas needed 100 million euros. With this new injection, it seems that the company reached its goal and even surpassed it.
Lineas’ race to 100 million
In May 2023, the company secured 20 million euros from French investment fund Argos Wityu, which owns 55 per cent of Lineas. Moreover, in February 2024 the Belgian state increased its stake in the company, via the Federal Participation and Investment Company (SFPIM), to 45 per cent. This led to a capital increase of 60 million euros, for a total of 80.
Since then, Lineas had been looking for private investors to fill in the final gap of 20 million euros. By receiving 46 million euros from the Wallonia and Flanders regions, it looks like the Belgian company, which claims to be Europe’s largest private rail freight operator, is back to a healthy state. However, the fact that the two Belgian regions are getting involved means Lineas couldn’t raise enough private capital to keep the company afloat.
The Flanders region will provide a loan of 17,5 million euros, which can be increased to 18 million euros through its investment fund PMV, as The Brussels Times specified. The Wallonia region is injecting an additional eight million euros via Wallonie Entreprendre. The remaining 20 million euros will be put on the table by KBC and Belfius, two Belgian banks. All these financial injections amount to 126 million euros, 26 more than Lineas initially needed.
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