Irish Government to sell Aer Lingus stake
18.09.11
The Irish government has confirmed that it plans to sell its 25 percent shareholding in Aer Lingus, with a 2012 sale now 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.
Minister Varadkar has already paved the way for a government sale of its Aer Lingus shareholding. He said: ‘The Aer Lingus stake was held for strategic reasons and 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 €130 million from the sale. They have instructed staff to undertake an analysis of the value of the shares and to source potential buyers. Budget airline Ryanair has re-iterated that it will not bid to increase its Aer Lingus shareholding - it owns just under 30 percent of its Irish rival - unless it was asked to do so.
Aer Lingus has net cash reserves of €358 million, 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 in New York. However, it is currently valued on the stock market at just just €93 million at the current €0.67 share price and pension deficit of €400 million. BA parent IAG's boss, Willie Walsh, has said it will not bid for the airline.
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