Low cost airline Ryanair has acquired majority stakes in Aer Lingus after buying 16 million shares from an unnamed seller.
The aggressive cut-price carrier has spent $49.52m or $3.15 per share for additional 16 million shares, which increases its stake from 25% to 28%. The airline had previously held a 25% stake in Aer Lingus.
The purchase would also make Ryanair the largest shareholder in Aer Lingus, ahead of the Irish Government, which has 25%, and the employee share ownership trust, which own 12.6%.
Right now Aer Lingus is facing pilots wrath over the Shannon-Heathrow route, and it’s assuming that Ryanair has a better potential to persuade beleaguered pilots and with the deal, Ryanair got better negotiating influence to woo jittered pilots. To end the strike Michael O’Leary, Ryanair chief executive, is attempting to convene a meeting of Aer Lingus shareholders following the contentious decision to switch Heathrow flights from Shannon to Belfast, in an effort to reverse the change.
A Ryanair spokeswoman said it did not comment on “any market speculation”. However, additional 3% stake buyout provides Ryanair a commanding position over the board as earlier it launched failed bid for Aer Lingus last October.
Via: Reuters
