IAG set to finalize Aer Lingus takeover
Print Edition
IAG is set to complete its takeover of Aer Lingus after Ryanair said it would accept the offer and a source familiar with the matter told Reuters the British Airways-owner would gain conditional EU approval.
IAG’s plan to buy Aer Lingus and build a new transatlantic hub at Dublin airport depended on agreement from Ryanair, which holds a 30 percent stake in Aer Lingus, and the Irish government, which agreed to sell its 25 percent stake in May.
It is set to clear the final hurdle and gain European Union antitrust approval for the 1.3-billion-euro (US$1.5 billion) bid after improving concessions to ease competition worries, a person familiar with the matter said yesterday.
The concessions were made ahead of a Wednesday deadline and include giving up some airport slots in London and special agreements with rivals, the source said. A spokesman for the EU declined to comment.
Shares in the three airlines extended earlier gains on news of the pending EU approval.
Ryanair had fully written down the value of its Aer Lingus stake, built up during several failed takeover attempts of its own dating back to 2006. That means the proceeds, slightly more than Ryanair spent accumulating its stake, will boost its finances.
“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,” Ryanair Chief Executive Michael O’Leary said in a statement.
A spokeswoman for IAG said the company welcomed Ryanair’s statement.
Cantor analyst Robin Byde said he wasn’t surprised IAG eventually won the support of Ryanair, which he said could now use the 400 million-euro proceeds to accelerate planned share buy-backs or pay further special dividends
“I don’t think they see IAG as particularly competitive with their own business so there was no reason to hold back further. It’s a straight commercial decision,” Byde said.
“It’s a stake they no longer needed to hold, it had no utility. It increases their cash even more at a time when they’ve got very large new aircraft orders and also they can pay another special dividend.”
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
