DC Advisory advises the Irish Government on the disposal of Aer Lingus plc to International Airlines Group SA

Background

• Aer Lingus, known as “the flag carrier of Ireland”, was founded by the Irish state in 1936. The government's stake, in the company Aer Lingus, after privatization, was reduced to 25% from 85%
• The International Consolidated Airlines Group SA (IAG) is a British-Spanish multinational airline holding company with a listing on the London and Spanish stock exchanges
• IAG is the parent company to several high-profile airlines including British Airways, Iberia, Vueling and Aer Lingus

Process

• DC Advisory was engaged by NewERA, the Department of Transport, Tourism and Sport and  to act as an advisor on the potential disposal of the government’s stake in Aer Lingus
• DC Advisory conducted a thorough valuation of Aer Lingus, considering the unique circumstances it faced, and the several attempts made to takeover Aer Lingus by RyanAir prior to IAG’s proposal

Outcome

• On 26th May 2015, The Irish government sold its 25% stake in Aer Lingus Group to International Consolidated Airlines Group SA (IAG) for €817m
• Acquiring Aer Lingus increased IAG’s market share in the transatlantic sector. As well as gaining access to Dublin transatlantic hub, the group was be able to capitalise on the augmented customer base in Europe
• Through Aer Lingus’ acquisition, IAG’s market share increased in the transatlantic sector and IAG gained access to Dublin transatlantic hub. As a result, IAG was able to capitalize on the augmented consumer base in Europe
• This transaction further showcases DC Advisory’s expertise in the infrastructure sector