(MENAFN- AFP) Ireland's low-cost carrier Ryanair said Friday that it has finally accepted International Airlines Group's bid for its near 30 percent stake in Irish rival Aer Lingus.
"The board of Ryanair Holdings plc today confirmed that it has voted unanimously to accept the IAG offer for Ryanair's 29.8 percent shareholding in Aer Lingus Group plc," it announced in a statement.
"The board believes that the current IAG offer maximises Ryanair shareholder value."
IAG, parent of British Airways and Iberia, has made a takeover bid valuing Aer Lingus at a total of 1.4 billion euros ($1.5 billion) and had secured the sale of the Irish government's 25-percent holding in May.
"We believe the IAG offer for Aer Lingus is a reasonable one in the current market and we plan to accept it, in the best interests of Ryanair shareholders," said Ryanair Chief Executive Michael O'Leary in the statement.
"The price means that Ryanair will make a small profit on its investment in Aer Lingus over the past nine years."
The deal offers Aer Lingus shareholders 2.55 euros per share -- comprising 2.50 euros plus a 0.05 euro cash dividend.
Ryanair itself had previously launched three unsuccessful takeover attempts for Aer Lingus.
British regulators had ordered Ryanair to cut its stake in Aer Lingus to just five percent on grounds of unfair competition.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.