Dáil Éireann Debate, Thursday - 28 September 2006
26 Mr. J. O’Keeffe asked the Minister for Transport if his attention has been drawn to reports that the percentage of Aer Lingus retained by the State is 25 per cent and not 25.1 per cent as indicated to the Dáil when the sale was sanctioned. [29716/06]
Amharc ar fhreagra52 Aengus Ó Snodaigh asked the Minister for Transport if he has satisfied himself with the amount that the State will receive from the sale of Aer Lingus. [29882/06]
Amharc ar fhreagra82 Mr. Durkan asked the Minister for Transport if he has satisfied himself that the flotation of Aer Lingus is proceeding satisfactorily and as planned; and if he will make a statement on the matter. [30082/06]
Amharc ar fhreagra101 Mr. Crowe asked the Minister for Transport the amount the State will make from selling the majority of its shares in Aer Lingus; and if he is satisfied with this amount. [29874/06]
Amharc ar fhreagra254 Mr. Durkan asked the Minister for Transport the degree to which the flotation of Aer Lingus is progressing according to plan; and if he will make a statement on the matter. [30394/06]
Amharc ar fhreagraI propose to take Questions Nos. 26, 52, 82, 101 and 254 together.
In its decisions of 18 May 2005 and 4 April 2006, the Government agreed to the State reducing its shareholding in Aer Lingus, whilst retaining a significant stake, by way of an Initial Public Offering (IPO) and on 6 July 2006, the general principles of the sale of shares in Aer Lingus were approved by Dáil Éireann.
The offer price was decided on Tuesday 26th September 2006 and conditional dealings in the shares commenced on the Irish and London Stock Exchanges yesterday. Formal admission of the shares to the Official Lists of the Irish Stock Exchange and the UK Financial Services Authority will take place next Monday (2 October) and unconditional dealings will commence on that date.
The Government's overarching objective has always been to provide the Company with access to new equity to enable it to compete effectively and fund the growth of its business. The company will, through the issue of new shares, raise gross proceeds of the order of half a billion Euro.
In addition, I expect that the State will raise gross proceeds of around €200m. I have said on several occasions that the State would retain a minimum shareholding of 25.1%. The State's retained shareholding is now expected to be approximately 28.3%. Approximately 2.8% of this shareholding is subject to a call in favour of the Employee Share Ownership Trust, and to protect against the dilution effect of the issue of bonus shares to certain investors in twelve months time.
