IAG and Aer Lingus reach agreement on terms of recommended cash offer for Aer Lingus
International Airlines Group (IAG) and Aer Lingus Group reached (26-May-2015) agreement on the terms of a recommended cash offer to be made by AERL Holding Limited, a wholly-owned subsidiary of IAG, for the "entire issued and to be issued" ordinary share capital of Aer Lingus. The offer comprises a cash payment of EUR2.50 per share and a EUR0.05 dividend payable on 29-May-2015. As part of the agreement, IAG agreed to provide Ireland's government with the following legally binding commitments:
- Aer Lingus will continue to hold its existing slots at London Heathrow;
- Aer Lingus will operate its current daily winter and summer scheduled frequencies between London Heathrow and Dublin, Cork and Shannon for at least seven years post-acquisition, and in the first five years post-acquisition, its other London Heathrow slots on routes to/from airports on the island of Ireland;
- Aer Lingus will operate all of its scheduled international air transport passenger services under the Aer Lingus brand, and maintain Aer Lingus as its registered name and its head office and place of incorporation in the Republic of Ireland.
The offer is conditional on AERL Holding receiving acceptances in respect of "not less than" 90% of Aer Lingus shares, in addition to Ryanair accepting to divest its 29.82% stake to IAG. IAG CEO Willie Walsh said: "Acquiring Aer Lingus would add a fourth competitive, cost effective airline to IAG, enabling us to develop our network using Dublin as a hub between the UK, continental Europe and North America, generating additional financial value for our shareholders." [more - original PR]