Irish Government confirm Aer Lingus stake sale
18.08.11
The Irish government has confirmed that it plans to sell its 25% shareholding in Aer Lingus, with a 2012 sale on the cards. Irish PM Enda Kenny and Transport Minister Leo Varadkar are under pressure to sell state assets to offset the crippling national debt. Mr Varadkar said: ‘The Aer Lingus stake was held for strategic reasons. Having studied the matter over the summer, I don’t think that really stands anymore.'
Ministers are keen for the Irish state to realise at least €130m from the sale. They have instructed staff to undertake an analysis of the value of the shares and to seek potential buyers. Aer Lingus has net cash reserves of €358m, which equates to €0.67 a share, as well as a valuable fleet of new, fuel-efficient aircraft and lucrative landing slot rights at major airports in Europe and America, including Heathrow and JFK.
However, it is currently valued on the stock market at just just €93m at the current €0.67 share price and pension deficit of €400m. BA parent IAG's boss, Willie Walsh, has said it will not bid for the airline. Budget airline Ryanair has re-iterated that it will not bid to increase its Aer Lingus shareholding - it owns just under 30% of its Irish rival - unless it was asked to do so. However, unless it can be persuaded to sell, finding another airline to buy seems unlikely.
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