Statement on possible cash offer for Aer Lingus Released 07:00 27-Jan-2015
STATEMENT ON POSSIBLE CASH OFFER FOR AER LINGUS GROUP PLC ("AER LINGUS")
International Consolidated Airlines Group, SA ("IAG") confirms it has submitted an improved proposal to make an offer for Aer Lingus. The proposal consists of an offer of €2.55 per share, structured as a cash payment of €2.50 per share, payable upon completion, in addition to an ordinary dividend of €0.05 per share. The proposal is subject to certain pre-conditions.
The Board of Aer Lingus has indicated to IAG that the financial terms of the proposal are at a level at which it would be willing to recommend to Aer Lingus shareholders, subject to being satisfied with the manner in which IAG proposes to address the interests of relevant parties. Accordingly the Board of Aer Lingus has granted IAG access to perform a limited period of confirmatory due diligence.
It is IAG's intention that under its ownership, Aer Lingus would:
§ operate as a separate business with its own brand, management and operations, continuing to provide connectivity to Ireland, while benefitting from the scale of being part of the larger IAG group;
§ join the oneworld alliance, of which British Airways and Iberia are key members; and
§ join the joint business that IAG operates over the North Atlantic with American Airlines, leveraging the natural traffic flows between Ireland and the US and the advantageous geographical position of Dublin for serving connecting flows.
IAG believes that the proposal would secure and strengthen Aer Lingus's brand and long term future within a successful and profitable European airline group, offering significant benefits to both Aer Lingus and its customers.
IAG recognises the importance of direct air services and air route connectivity for investment and tourism in Ireland and intends to engage with the Irish Government in order to secure its support for the transaction.
A further statement will be made if and when appropriate.