Dáil Éireann díospóireacht -
Tuesday, 20 Jun 2000

Vol. 521 No. 4

Written Answers. - Aer Lingus IPO.

Ivan Yates

Ceist:

26 Mr. Yates asked the Minister for Public Enterprise if she will clarify the mandate given to the Government advisers on the proposed IPO for Aer Lingus; and if this includes an underwriting role whereby those involved will be obliged to purchase the shares themselves in the event of a low uptake by the retail market and institutions of the shares. [17061/00]

Bernard J. Durkan

Ceist:

92 Mr. Durkan asked the Minister for Public Enterprise if a flotation will take place in respect of Aer Lingus; of so, when; the company which will handle the transaction; the way in which such a body will be appointed; and if she will make a statement on the matter. [17617/00]

Minister for Public Enterprise (Mrs. O'Rourke)

I propose to take Questions Nos. 26 and 92 together.

The Government's advisers on the Aer Lingus IPO will fulfil the roles of integrated financial advisers and distributors both domestically and internationally. In this context and in accordance with normal practice, an underwriting agreement will be executed at the appropriate time.

Last December, the Government announced its intention of completing an initial public offering of shares in Aer Lingus in the latter half of this year or early 2001 depending on market conditions and the satisfactory finalisation of all preparatory stages for the transaction. In that regard, the Government authorised myself and the Minister for Finance to appoint appropriate advisers for the purposes of an IPO.

The selection process for a range of advisers, including financial, PR/marketing and advertising advisers, has been under way for some time in accordance with EU procurement rules and Department of Finance guidelines. This requires the placing of notices in the main national newspapers and the Official Journal of the European Communities seeking tenders for the provision of specified services followed by an evaluation of tenders received by a steering committee. A number of advisers have already been appointed with the remaining selections expected to be made by end June 2000.

In relation to financial advisers and joint global co-ordinators, AIB Capital Markets and Salomon Smith Barney were appointed for that role in the IPO process following a tender competition. Their primary function is to provide advice and assistance to myself and the Minister for Finance, as shareholders, concerning all aspects of the preparations, procedures and implementation in relation to arranging and executing an IPO of shares in the company and any other matters arising in that regard.