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25-Mar-2019 10:26 AM

easyJet releases Brexit 'no deal' contingency plan

easyJet released (22-Mar-2019) details of its contingency plan to ensure continued compliance with EU ownership and control, to be activated in the case of a 'no deal' Brexit. Key highlights include:

  • Following 13-Mar-2019, EU ownership of easyJet increased to 49.92%. This is below the 50% plus one share which will be required following Brexit;
  • easyJet will set a maximum of non EU ownership in accordance to existing provisions of its articles of association;
  • Board members plan to suspend shareholders voting rights based on a 'last in first out' basis in accordance with easyJet's articles of association;
  • Company expects it will set a permitted maximum of non EU ownership in accordance with the existing provisions of the articles of association;
  • For the period of any suspension, the relevant shareholders would not be permitted to attend, speak or vote at shareholder meetings in respect of the shares subject to the suspension;
  • Contingency plan would take effect if EU ownership remains or falls below 50.5%. If EU ownership remained below the required level over time, the board retains the right to activate the existing provisions of the articles, which permit it to compel non EU shareholders to sell their easyJet shares to EU nationals.

The company expects to keep EU ownership under review following Brexit. [more - original PR]

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