Ryanair Holdings PLC RYANAIR BOARD VOTES TO ACCEPT IAG OFFER (6790S)
July 10 2015 - 2:30AM
UK Regulatory
TIDMRYA TIDMAERL
RNS Number : 6790S
Ryanair Holdings PLC
10 July 2015
RYANAIR BOARD VOTES TO ACCEPT IAG OFFER FOR AER LINGUS STAKE
The Board of Ryanair Holdings PLC today (10 July) confirmed that
it has voted unanimously to accept the IAG offer for Ryanair's
29.8% shareholding in Aer Lingus Group plc. Ryanair's stake in Aer
Lingus has been available for sale since May 2012 (see attached)
and the Board believes that the current IAG offer maximises Ryanair
shareholder value.
In line with this decision, Ryanair will now vote in favour of
the motion at the Aer Lingus EGM on the 16 July next (to give the
Irish Government a golden share over Aer Lingus's Heathrow slots)
and Ryanair will also vote its 29.8% shareholding in favour of
acceptance of the IAG offer, subject to this offer receiving
regulatory approval from the European competition authorities.
Ryanair's Michael O'Leary said:
"We believe the IAG offer for Aer Lingus is a reasonable one in
the current market and we plan to accept it, in the best interests
of Ryanair shareholders. The price means that Ryanair will make a
small profit on its investment in Aer Lingus over the past 9
years.
This sale of our stake is timely given that our original
strategy for Aer Lingus (to use it as a mid-priced brand to offer
competition to flag carriers at primary airports) has been
overtaken by the successful rollout -since Sept 2013- of Ryanair's
"Always Getting Better" strategy, which has seen the Ryanair brand
successfully enter many of Europe's primary airports, being
rewarded with strong growth in our network, traffic, load factor
and profitability, while keeping our fares low and our punctuality
high.
We wish IAG well with their takeover of Aer Lingus. When Ryanair
first bid for Aer Lingus in late 2006, Ryanair (36m passengers)
carried 4 times Aer Lingus traffic (9m). Today Ryanair (over 100m)
carries more than 10 times Aer Lingus traffic (10m), and we will
continue to deliver the vast majority of Ireland's traffic and
tourism growth in the coming months and years."
RYANAIR STATEMENT ON ETIHAD'S 2.9%
STAKE IN AER LINGUS - 1 MAY 2012
Ryanair's Michael O'Leary said:
"Etihad's purchase of a 2.9% shareholding in Aer Lingus doesn't
alter the future of Aer Lingus, which can only be decided when or
if the Irish Government sells their 25% stake. If this is sold to
Etihad or to a financial investor, then it is inevitable that Aer
Lingus will be broken up and some or all of its Heathrow slots lost
to Ireland.
"As our 7 Sept 2011 statement made clear, Ryanair will work with
whomever the Government sells its 25% stake to (if it isn't sold to
us), we would welcome any other financially strong airline/investor
who acquires this stake, and who could then work with Ryanair and
other shareholders to restore shareholder value, which has plunged
by two thirds from over EUR3 to less than EUR1 per share currently
under the existing Board."
RYANAIR STATEMENT ON AER LINGUS - 7 SEPT 2011
Ryanair today (7(th) September) responded to statements
reportedly made by Minister for Transport, Leo Varadkar that the
Government might consider a disposal of its non strategic 25%
shareholding in Aer Lingus.
Ryanair wishes to confirm the following:
1. If the Irish Govt wishes to dispose of its 25% stake in Aer
Lingus, and if the Govt believes that any offer from Ryanair for
this stake would be unwelcome, then Ryanair is happy to confirm
that it will not bid for the Govt's 25% stake (although this may
result in the Govt realising a lower price for its shares).
2. Ryanair would welcome another financially strong
airline/investor acquiring the Govt's 25% stake, which could then
work with Ryanair and other like minded shareholders to restore
shareholder value, which has been destroyed over the past five
years by the Board and Management of Aer Lingus.
3. Should another financially strong airline/investor acquire
the Govt's 25% stake, Ryanair would not rule out entering into
discussions with that party for the subsequent disposal of
Ryanair's near 30% stake subject to an acceptable agreement on
price and maximising shareholder value.
Ryanair will not engage in, or comment upon, rumour or
speculation, but remains willing to work with any other Aer Lingus
shareholders to maximise shareholder value which has under the
current Board of Aer Lingus collapsed by more than 80% from over
EUR3.00 per share in early 2007 to less than EUR0.60 per share in
recent days.
For further information
please contact:
Robin Kiely Joe Carmody
Ryanair Ltd Edelman Ireland
Tel: +353-1-9451212 Tel: +353-1-6798 333
press@ryanair.com ryanair@edelman.com
This information is provided by RNS
The company news service from the London Stock Exchange
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