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Ryanair offers to buy Aer Lingus for euro1.48 billion

Ryanair offers to buy Aer Lingus for euro1.48 billion

Ryanair Holdings PLC, Europe's largest discount airline, offered Thursday to buy Aer Lingus PLC for euro1.48 billion (US$1.88 billion) to expand its operations in Ireland.
Ryanair said it would pay euro2.80 (US$3.55) a share for the former state-owned carrier. The offer represents a premium of 12 percent more than Tuesday's closing price of euro2.51 (US$3.18).
"This offer represents a unique opportunity to form one strong airline group for Ireland and for European consumers," Chief Executive Michael O'Leary said in a statement.
O'Leary said he also wants to buy the Irish government's 28 percent stake in Aer Lingus. The government has previously said it will retain the stake to safeguard Irish economic interests.
He pledged not to absorb Aer Lingus into Ryanair, Europe's biggest no-frills carrier.
Ryanair said it would cut Aer Lingus' short-haul fares by 2.5 percent annually for the next four years; retain the Aer Lingus brand and its slots at Heathrow, the only major London airport that Ryanair does not use and upgrade Aer Lingus' longhaul fleet serving U.S. routes.
Aer Lingus was floated on the Dublin and London stock exchanges last week.
Ryanair shares soared 12 percent in Dublin to euro2.82 (US$3.58)).


Updated : 2020-12-02 12:20 GMT+08:00