Ryanair to sell Aer Lingus stake to rival IAG

The airline said it will now vote in favour of the motion at the Aer Lingus extraordinary general meeting next Thursday.

Ryanair Holdings Plc’s board voted to accept an offer from IAG SA for its 29.8 percent stake in Aer Lingus Group Plc, removing one of the last hurdles in the British Airways owner’s quest to add the Irish carrier to its portfolio.

Ryanair owns 29.8% of the ex- national airline, but their board has accepted the current IAG bid, which they say will gain the maximum value.

Ryanair said it will now use its vote in favour of acceptance of the IAG offer for Aer Lingus at an EGM next week.

In May a major obstacle to the deal was removed when the Irish government decided to sell its 25.1% shareholding in Aer Lingus, after IAG gave assurances that it would maintain services between Heathrow and Dublin, Cork and Shannon, continue with the Aer Lingus brand and remain it headquartered in Ireland.

The airline said it will make a small profit on its investment in Aer Lingus over the past 9 years.

The European Commission extended the deadline for its decision to July 15 after receiving competition concessions, including a commitment from IAG to allow the Irish carrier to keep commercial deals with rivals on long-haul flights via London, a source close to the matter said.

Ryanair has itself tried to buy Aer Lingus on three occasions but has been knocked back by competition officials. Shares in IAG rose more than 2% on the news.

Analysts expect Ryanair to return the cash from the sale to shareholders.