Sep 28, 2016, 2:57 pm
Last edit by: JDiver
Aer Lingus takeover by IAG
Executive summary: Rumours of IAG (International Consolidated Airlines Group, British Airways, IAG Cargo, Iberia and Vueling - Link to Wikipedia article) interest in acquiring EI strengthened in December 2014, with refusals and objections by then 29% owner Ryanair, EI Board of Directors and some Irish government leaders (a 25% stake was held by the Irish government).
Aer Lingus, currently headed by CEO Stephen Kavanagh, was acquired by IAG for €1.36bn in 2015; IAG took full control of Aer Lingus on 02 Sep 2015.
Aer Lingus is working to join the oneworld airline alliance and plans to expand service to the U.S. later this year and next, CEO Stephen Kavanagh said Wednesday.
...Aer Lingus will strive to join the oneworld alliance that counts British Airways and American Airlines among its founding members.
“There are some advantages to joining the big-boys’ club,” Kavanagh said. While Avios will be a competitive tool, “ultimately, we believe that will result in our joining again oneworld,” he said.
Link to USA Today article - 18 May 2016
...Aer Lingus will strive to join the oneworld alliance that counts British Airways and American Airlines among its founding members.
“There are some advantages to joining the big-boys’ club,” Kavanagh said. While Avios will be a competitive tool, “ultimately, we believe that will result in our joining again oneworld,” he said.
Link to USA Today article - 18 May 2016
Aer Lingus is on target to join the OneWorld alliance next year (2017), when it should also be able to benefit from BA's joint venture with American Airlines.
"The next big integration issue will be Aer Lingus coming into the joint business on the transatlantic. That will require some systems changes," said (IAG CEO) Mr Walsh.
Link to article in Independent - 30 Apr 2016
"The next big integration issue will be Aer Lingus coming into the joint business on the transatlantic. That will require some systems changes," said (IAG CEO) Mr Walsh.
Link to article in Independent - 30 Apr 2016
On 26 May 2015, after months of negotiations on a possible IAG takeover, the Irish government agreed to sell its 25% stake in the company. Ryanair retained a 30% stake in Aer Lingus which it agreed to sell to IAG on 10 July 2015 for €2.55 per share. In August 2015, Aer Lingus' shareholders officially accepted IAG's takeover offer. IAG subsequently assumed control of Aer Lingus on 2 September 2015.
Link to Wikipedia article about Aer Lingus
Link to Wikipedia article about Aer Lingus
Aer Lingus IAG take over bid [Master Thread]
May 18, 2015, 3:48 am
#226
Join Date: Jul 2011
Posts: 1,663
May 21, 2015, 6:47 am
#227
FlyerTalk Evangelist
Join Date: Feb 2009
Location: From ORK, live LCY
Programs: BA Silver, EI Silver, HH Gold, BW Gold, ABP, Seigneur des Horaires des Mucci
Posts: 14,209
I am surprised the Takeover Panel has not stepped in with a put up or shut up order. This has been going on forever.
May 21, 2015, 7:17 am
#228
Join Date: Sep 2014
Location: Brexile in ADB
Programs: BA, TK, HHonours, Le Club, Best Western Rewards
Posts: 7,067
I believe those are normally used when a company is sniffing around possibly buying up shares but won't confirm if it will bid or not. Tends to make the shares volitile. IAG have tabled a formal offer which is waiting on sahreholder approval, I am not aware under Irish law if there is a legal avenue to speed up the process aside from a threat to withdraw the offer.
May 24, 2015, 6:04 am
#230
FlyerTalk Evangelist
Join Date: Mar 2008
Location: Netherlands
Programs: KL Platinum; A3 Gold
Posts: 28,714
May 26, 2015, 1:47 am
#231
FlyerTalk Evangelist
Join Date: Mar 2008
Location: Netherlands
Programs: KL Platinum; A3 Gold
Posts: 28,714
Coalition will approve sale of Aer Lingus to IAG today
I guess I was wrong!
Originally Posted by Irish Independent
Coalition will approve sale of Aer Lingus to IAG today
Taoiseach Enda Kenny confirmed this morning the Cabinet will be discussing the matter.
Speaking ahead of a meeting with UN Chief Ban Ki-Moon, Mr Kenny said Transport Minister had assessed the report from an expert group which said IAG had offered a fair price for Aer Lingus. This report will be presented at cabinet this morning.
Taoiseach Enda Kenny confirmed this morning the Cabinet will be discussing the matter.
Speaking ahead of a meeting with UN Chief Ban Ki-Moon, Mr Kenny said Transport Minister had assessed the report from an expert group which said IAG had offered a fair price for Aer Lingus. This report will be presented at cabinet this morning.
May 26, 2015, 12:44 pm
#232
Original Poster
Join Date: Jun 2006
Posts: 5,892
The cabinet have approved it . ^
The Cabinet discussion on Aer Lingus sale is over and sources say the "deal is done".
The Cabinet had been expected to agree to sell off the State’s stake in Aer Lingus after securing a suite of guarantees surrounding jobs, routes and the Heathrow slots.
Independent.ie learned this evening that the offer from the International Airlines Group (IAG) includes the introduction of four new transatlantic routes and a pledge to create 635 jobs by 2020.
A senior Government source said the proceeds from the sale of the 25.1pc shareholding will bd used for investment purposes and not to pay off national debt.
http://www.independent.ie/business/i...-31255934.html
The Cabinet discussion on Aer Lingus sale is over and sources say the "deal is done".
The Cabinet had been expected to agree to sell off the State’s stake in Aer Lingus after securing a suite of guarantees surrounding jobs, routes and the Heathrow slots.
Independent.ie learned this evening that the offer from the International Airlines Group (IAG) includes the introduction of four new transatlantic routes and a pledge to create 635 jobs by 2020.
A senior Government source said the proceeds from the sale of the 25.1pc shareholding will bd used for investment purposes and not to pay off national debt.
http://www.independent.ie/business/i...-31255934.html
May 26, 2015, 1:55 pm
#235
Original Poster
Join Date: Jun 2006
Posts: 5,892
Government statement :
Minister for Transport, Tourism and Sport, Paschal Donohoe TD, announces Government’s support for International Airlines Group (IAG)’s offer for Aer Lingus
Tuesday, 26th May 2015
The Minister for Transport, Tourism and Sport, Paschal Donohoe TD, has announced that at its meeting today (Tuesday) the Government took a decision to support IAG’s offer for Aer Lingus. The Government decision was taken following detailed and careful consideration of all of the issues involved in a potential disposal of the State’s 25.1% minority shareholding in Aer Lingus and the extensive discussions that have taken place with IAG on the matters that the Minister highlighted in his statement of 24th February.
In the discussions between IAG and the inter-Departmental Steering Group since 24th February, IAG provided the additional information and certain commitments sought by the Minister. This information and details of the offer to all Aer Lingus shareholders are outlined in the announcement made by IAG today. Having carefully considered all elements of the offer, the Government considers that a sale of the State’s minority shareholding to IAG, on the basis of the terms offered, would be the best means of securing and enhancing Ireland’s connectivity with the rest of the world and maintaining a vibrant and competitive air transport industry in Ireland. It would also best serve the interests of the travelling public, Aer Lingus and its employees, the Irish tourism industry and the Irish economy as a whole.
The Government also agreed this morning the General Principles of the proposed disposal of the State’s shares which are held by the Minister for Finance, and Minister Donohoe will seek Dáil approval for these shortly, as required under Section 3(5) of the Aer Lingus Act 2004.
The details of the offer and further details of IAG’s plans for Aer Lingus are contained in today’s announcement by IAG. However, the Minister wishes to highlight a number of issues that were of particular importance to the Government in deciding to support IAG’s offer.
http://www.dttas.ie/press-releases/2...s-government’s
----
Aer Lingus statement :
Recognising the importance of the Aer Lingus brand and of direct air services and connectivity for investment and tourism in Ireland, IAG has agreed the basis for legally binding commitments with the Government of Ireland which ensure that:
• Aer Lingus will continue to hold its existing slots at London Heathrow;
• Aer Lingus will operate (i) its current daily winter and summer scheduled frequencies between London Heathrow and Dublin, Cork and Shannon for at least seven years post- acquisition, and (ii) in the first five years post-acquisition, its other London Heathrow slots on routes to/from airports on the island of Ireland; and
• 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,
in each case unless otherwise agreed by the Minister for Finance of Ireland. The coming into effect of these commitments is subject (amongst other things) to (i) the approval by Dáil Éireann of the general principles of the disposal of shares in Aer Lingus held by the Minister for Finance of Ireland as required by the Aer Lingus Act 2004 and the sale of those shares into the Offer, (ii) the approval of the arrangements with the Minister for Finance of Ireland by the Independent Aer
Lingus Shareholders for the purposes of Rule 16 of the Irish Takeover Rules, (iii) the approval of the Connectivity Resolutions, and (iv) the Offer becoming (or being declared) wholly unconditional.
• An EGM of Aer Lingus will be convened for the purposes of seeking the approval of the Connectivity Resolutions and the granting of the Rule 16 Approval.
• The IAG Board believes that an acquisition of Aer Lingus by AERL Holding would provide substantial benefits to customers through an enhanced network, particularly to North America, aided by using Dublin as a natural gateway hub for transatlantic routes, and would provide significant job creation opportunities in Aer Lingus’ business.
• The Independent Aer Lingus Directors, who have been so advised by Goldman Sachs International as to the financial terms of the Offer, consider the Offer to be fair and reasonable. In providing its advice to the Independent Aer Lingus Directors, Goldman Sachs International has taken into account the commercial assessments of the Independent Aer Lingus Directors. Accordingly, the Independent Aer Lingus Directors intend unanimously to recommend that Aer Lingus Shareholders accept the Offer and vote in favour of the Rule 16 Approval and the Connectivity Resolutions, as the Independent Aer Lingus Directors have irrevocably undertaken to do in respect of their own beneficial holdings of 606,693 Aer Lingus Shares representing, in aggregate, approximately 0.11 per cent. of the issued share capital of Aer Lingus on 25 May 2015 (being the last practicable date prior to the publication of this announcement).
• The Government of Ireland has stated that it supports the Offer and the Minister for Finance of Ireland has confirmed that the general principles of the disposal of his shares in Aer Lingus will be laid before Dáil Éireann for approval prior to such disposal, in accordance with the requirements of the Aer Lingus Act 2004.
http://corporate.aerlingus.com/iagof...nouncement.pdf
Minister for Transport, Tourism and Sport, Paschal Donohoe TD, announces Government’s support for International Airlines Group (IAG)’s offer for Aer Lingus
Tuesday, 26th May 2015
The Minister for Transport, Tourism and Sport, Paschal Donohoe TD, has announced that at its meeting today (Tuesday) the Government took a decision to support IAG’s offer for Aer Lingus. The Government decision was taken following detailed and careful consideration of all of the issues involved in a potential disposal of the State’s 25.1% minority shareholding in Aer Lingus and the extensive discussions that have taken place with IAG on the matters that the Minister highlighted in his statement of 24th February.
In the discussions between IAG and the inter-Departmental Steering Group since 24th February, IAG provided the additional information and certain commitments sought by the Minister. This information and details of the offer to all Aer Lingus shareholders are outlined in the announcement made by IAG today. Having carefully considered all elements of the offer, the Government considers that a sale of the State’s minority shareholding to IAG, on the basis of the terms offered, would be the best means of securing and enhancing Ireland’s connectivity with the rest of the world and maintaining a vibrant and competitive air transport industry in Ireland. It would also best serve the interests of the travelling public, Aer Lingus and its employees, the Irish tourism industry and the Irish economy as a whole.
The Government also agreed this morning the General Principles of the proposed disposal of the State’s shares which are held by the Minister for Finance, and Minister Donohoe will seek Dáil approval for these shortly, as required under Section 3(5) of the Aer Lingus Act 2004.
The details of the offer and further details of IAG’s plans for Aer Lingus are contained in today’s announcement by IAG. However, the Minister wishes to highlight a number of issues that were of particular importance to the Government in deciding to support IAG’s offer.
http://www.dttas.ie/press-releases/2...s-government’s
----
Aer Lingus statement :
Recognising the importance of the Aer Lingus brand and of direct air services and connectivity for investment and tourism in Ireland, IAG has agreed the basis for legally binding commitments with the Government of Ireland which ensure that:
• Aer Lingus will continue to hold its existing slots at London Heathrow;
• Aer Lingus will operate (i) its current daily winter and summer scheduled frequencies between London Heathrow and Dublin, Cork and Shannon for at least seven years post- acquisition, and (ii) in the first five years post-acquisition, its other London Heathrow slots on routes to/from airports on the island of Ireland; and
• 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,
in each case unless otherwise agreed by the Minister for Finance of Ireland. The coming into effect of these commitments is subject (amongst other things) to (i) the approval by Dáil Éireann of the general principles of the disposal of shares in Aer Lingus held by the Minister for Finance of Ireland as required by the Aer Lingus Act 2004 and the sale of those shares into the Offer, (ii) the approval of the arrangements with the Minister for Finance of Ireland by the Independent Aer
Lingus Shareholders for the purposes of Rule 16 of the Irish Takeover Rules, (iii) the approval of the Connectivity Resolutions, and (iv) the Offer becoming (or being declared) wholly unconditional.
• An EGM of Aer Lingus will be convened for the purposes of seeking the approval of the Connectivity Resolutions and the granting of the Rule 16 Approval.
• The IAG Board believes that an acquisition of Aer Lingus by AERL Holding would provide substantial benefits to customers through an enhanced network, particularly to North America, aided by using Dublin as a natural gateway hub for transatlantic routes, and would provide significant job creation opportunities in Aer Lingus’ business.
• The Independent Aer Lingus Directors, who have been so advised by Goldman Sachs International as to the financial terms of the Offer, consider the Offer to be fair and reasonable. In providing its advice to the Independent Aer Lingus Directors, Goldman Sachs International has taken into account the commercial assessments of the Independent Aer Lingus Directors. Accordingly, the Independent Aer Lingus Directors intend unanimously to recommend that Aer Lingus Shareholders accept the Offer and vote in favour of the Rule 16 Approval and the Connectivity Resolutions, as the Independent Aer Lingus Directors have irrevocably undertaken to do in respect of their own beneficial holdings of 606,693 Aer Lingus Shares representing, in aggregate, approximately 0.11 per cent. of the issued share capital of Aer Lingus on 25 May 2015 (being the last practicable date prior to the publication of this announcement).
• The Government of Ireland has stated that it supports the Offer and the Minister for Finance of Ireland has confirmed that the general principles of the disposal of his shares in Aer Lingus will be laid before Dáil Éireann for approval prior to such disposal, in accordance with the requirements of the Aer Lingus Act 2004.
http://corporate.aerlingus.com/iagof...nouncement.pdf
May 26, 2015, 11:44 pm
#237
Join Date: Oct 2001
Location: PHX/SFO/LAX
Programs: AA-EXP (1.7MM), BA-Slvr, HH-Diamond
Posts: 7,784
In reality no. However, IAG has stipulated that it wants an agreement to sell from both the govt and FR.
May 27, 2015, 3:21 am
#238
FlyerTalk Evangelist
Join Date: Mar 2008
Location: Netherlands
Programs: KL Platinum; A3 Gold
Posts: 28,714
Rowdy scenes in the Dáil
Originally Posted by The Irish Independent
There were rowdy scenes in the Dail as TDs begin a two day debate on the sale of the State's 25pc stake in Aer Lingus to the International Airlines Group (IAG).
Fianna Fáil leader Micheal Martin has accused the Government of treating the Opposition with "contempt" after it cancelled the ordinary Dail business to pave the way for the Aer Lingus debate.
Mr Martin described the move as "slieveen".
Fianna Fáil leader Micheal Martin has accused the Government of treating the Opposition with "contempt" after it cancelled the ordinary Dail business to pave the way for the Aer Lingus debate.
Mr Martin described the move as "slieveen".
May 27, 2015, 4:08 am
#239
Original Poster
Join Date: Jun 2006
Posts: 5,892
Ryanair have to get rid of their stake as ordered by the courts. So this is a rather ''saving face'' opportunity for them.
May 27, 2015, 4:30 am
#240
FlyerTalk Evangelist
Join Date: Mar 2008
Location: Netherlands
Programs: KL Platinum; A3 Gold
Posts: 28,714