Aer Lingus joins IAG as shareholders approve deal

It's the end of an era as more than 95 per cent of Aer Lingus shareholders vote in favour of an acquisition by British Airways owner IAG, thus formally bringing to an end almost 80 years of state involvement in the airline.

In a statement on Tuesday evening, IAG said that its €1.5bn acquisition of the Irish airline “is now wholly unconditional”, following the submission of Ryanair’s acceptance. The significance of this announcement is that the sale of Aer Lingus is now irreversible.

Willie Walsh, IAG chief executive, said: "We'd like to welcome Aer Lingus into IAG. It will remain an iconic Irish brand with its base and management team in Ireland but will now grow as part of a strong, profitable airline group. This means new routes and more jobs benefiting customers, employees and the Irish economy and tourism".

On Tuesday, the deadline by which shareholders had to vote, Ryanair submitted its form of acceptance, bringing shareholder approval for the deal above the 95 per cent mark. IAG can now enforce compulsory purchase of the remaining amount.

Shareholders who accepted the offer by Tuesday’s deadline of 1pm, will be paid on or before 1 September 1st 2015. Shareholders will receive a cash payment of € 2.50 for each share held, and a cash dividend payment of 5 cents per share.

Those shareholders who have still not accepted the offer, can do so before the final closing date of 15.00 on September 1st 2015. They will be paid within 14 days of acceptance.

“Aer Lingus shareholders who have not yet accepted the offer are encouraged to do so without delay,” IAG said.

But there are still some steps remaining before Aer Lingus can claim to be owned by IAG. Firstly, the shareholders must receive payment, a process which is expected to take about two weeks. In addition, IAG will move to delist Aer Lingus from both the Dublin and London stock exchanges. IAG said that this will take effect “no earlier than 0800 (Irish time) on 17 September 2015”. The board of Aer Lingus must also officially resign.

AERL Holding, a subsidiary of IAG, will now acquire compulsorily any outstanding Aer Lingus shares and will then re-register Aer Lingus as a private company.

IAG first launched a €1bn bid for the airline in December 2014, which was rejected on the grounds that it “fundamentally undervalued” the airline. The group later upped its bid to €2.55 a share and ultimately succeeded in getting approval from the major shareholders in the airline, including the Government’s 29.7 per cent stake.