Ireland to sell 25% stake in Aer Lingus to British Airways owner

But will larger shareholder Ryanair co-operate with deal?

The Irish government has agreed a deal with British Airways owner IAG to sell its 25% in Irish airline Aer Lingus.

The Irish government is also recommending that IAG takeover the entire business after the company offered €1.36bn (£961m) for the Irish airline.

The sale will cement a deal that will see services between Irish airports and London Heathrow maintained at current levels with a legally binding contract lasting seven years.

But the takeover is also dependent on the agreement of other major shareholder Ryanair, which holds a 29.8% stake in Aer Lingus.

No objections have yet come from the company however, and Ryanair chief executive Michael O’Leary recently said he would consider any offer from IAG.

In a statement yesterday, Ryanair said: “The board of Ryanair has yet to receive any offer, and will consider any offer on its merits, if and when an offer is made.”

Meanwhile, Aer Lingus chairman Colm Barrington said: “This is a compelling transaction for Aer Lingus, its shareholders, its employees, its customers and for Ireland.

“The company will reap the commercial and strategic benefits of being part of the much larger and globally diverse IAG Group.”

Now read

Social Bookmarks