IAG limits non-EU shareholding

No post image

International Airlines Group (IAG) – the parent company of British Airways, Iberia, Aer Lingus, Veuling and Level has capped the maximum permitted ownership by non-European Union (EU) entities at 47.5 per cent.

IAG said its board has decided that, due to the level of share ownership by “relevant non-EU persons”, it is necessary to specify a maximum aggregate number of relevant non-EU shares under the company’s bylaws.

The airline group gave “no assurance” if the imposed limit will be lifted and said that the move was “necessary”. The limit has already been reached so non-EU entities can no longer acquire IAG shares.

Carriers reaping the benefits of EU traffic rights must ensure they are majority EU-owned. The UK is currently an EU member, but is set to leave on 29 March, which has lead EU airlines to look into the impact of UK shareholdings.

IAG also said UK investors “are not and will not be treated as” non-EU entities.

“IAG confirms that Relevant UK Persons are not and will not be treated as Relevant Non-EU Persons and, therefore, are not and will not be subject to the restrictions on share acquisitions set out in this announcement, unless IAG notifies shareholders otherwise. IAG has no plans to issue such a notification,” IAG said.