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28-Jan-2015 10:24 AM

IAG confirms increased offer for Aer Lingus

International Airlines Group (IAG) confirmed (27-Jan-2015) it has submitted an improved proposal to make an offer for Aer Lingus, comprising an offer of EUR2.55 per share structured as a cash payment of EUR2.50 per share, payable upon completion, in addition to an ordinary dividend of EUR0.05 per share. The board of Aer Lingus has indicated the financial terms "are at a level at which it would be willing to recommend to Aer Lingus shareholders, subject to being satisfied with the manner in which IAG proposes to address the interests of relevant parties. Accordingly the Board of Aer Lingus has granted IAG access to perform a limited period of confirmatory due diligence." IAG stated its intention that under its ownership, Aer Lingus would:

  • Operate as a separate business with its own brand, management and operations, continuing to provide connectivity to Ireland, while benefiting from the scale of being part of the larger IAG group;
  • Join the oneworld alliance, of which British Airways and Iberia are key members;
  • Join the joint business that IAG operates over the North Atlantic with American Airlines, leveraging the natural traffic flows between Ireland and the US and the advantageous geographical position of Dublin for serving connecting flows.

IAG stated: "IAG believes that the proposal would secure and strengthen Aer Lingus's brand and long term future within a successful and profitable European airline group, offering significant benefits to both Aer Lingus and its customers. IAG recognises the importance of direct air services and air route connectivity for investment and tourism in Ireland and intends to engage with the Irish Government in order to secure its support for the transaction." [more - original PR]

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