Ryanair jumps higher after accepting IAG offer for Aer Lingus stake
Updated : 14:59
Shares in budget airline Ryanair jumped 3% after the company said it has voted unanimously to accept the offer from Iberia and British Airways parent IAG for its 29.8% shareholding in Aer Lingus.
Ryanair noted that its stake in Aer Lingus has been available for sale since May 2012 and said the current offer, which is made up of €2.50 per Aer Lingus share and a cash dividend of €0.05 per share, maximises Ryanair shareholder value.
Chief executive officer 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."
Lewis Sturdy, a dealer at London Capital Group, said: “Ryanair's sale of its stake in Aer Lingus provides a healthy war chest for continued expansion as Ryanair continues to benefit from its recent change in attitude towards customer service."
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