The Government and Aer Lingus have formally announced details of plans to privatise the airline and list the airline's shares on the Dublin and London Stock Exchanges.
A statement from the Department of Transport and Aer Lingus says that the prospectus for the floatation, including the price range, will be published in the second week of September. The statement says that pricing of the offer is expected to take place in late September.
The statement also confirmed that the Finance Minister will keep a significant minority shareholding of 'at least 25.1%' in Aer Lingus.
The two parties confirmed that the proceeds of the flotation will be used by Aer Lingus to finance the airline's short-haul and long-haul fleet. A once-off pension contribution will also be made. Aer Lingus currently operates a fleet of 35 aircraft.
It was also confirmed that members of the public in Ireland and the UK will be able to apply for ordinary shares, subject to a minimum investment of €10,000. The shares can be bought through a stockbroker and the participating stockbrokers are Goodbody, Merrion, Bloxham, Campbell O'Connor and Co, Davy, Dolmen, Fexco and NCB.
'This is the right decision for the company, its employees, customers and Ireland and it is taking place in order to give Aer Lingus both the commercial flexibility and the financial strength to succeed in what is a highly competitive global marketplace,' commented Transport Minister Martin Cullen today.
'The proposed IPO will give the company access to the wider capital markets and enable it to realise its full potential,' commented Aer Lingus John Sharman. 'Aer Lingus and its staff can now look forward to the future with confidence,' he added.
'Aer Lingus has demonstrated the success and scalability of our low cost, low-fares business model across the short-haul and long-haul markets in which we operate,' said Aer Lingus CEO Dermot Mannion.
'This, coupled with our continuing focus on cost control, a well recognised brand and a strong management team and staff will enable us to capitalise on the significant profitable growth opportunities that exist for us today. Becoming a publicly listed company will enable us to capitalise fully on these opportunities,' he added.
Business and employers group IBEC welcomed the announcement and said that the IPO brought greater urgency to the need for an open skies agreement to be concluded between the EU and the US.
IBEC Transport Director Reg McCabe said:"The IPO announcement is very welcome news for the taxpayer and the travelling public. In particular Aer Lingus customers can look forward with greater certainty to the expansion of the airline's route network, with new services to North America and possibly Asia."
