IAG’s Brexit share cap won’t apply to investors in the UK

WITH Brexit coming down to the wire, Aer Lingus owner IAG has moved to limit ownership of the airline group by non-Euopean Union shareholders to 47.5pc.

But IAG, whose chief executive is former Aer Lingus boss Willie Walsh, said that United Kingdom citizens would not be subjected to a share-buying cap it has imposed.

The decision, announced late on Monday, comes as the IAG awaits an outcome to the UK government’s on-going efforts to avoid a hard Brexit.

Under current rules, all EU airlines must be more than 50pc-owned by EU nationals or entities.

Airlines that will no longer be majority-owned by European Union nationals once Britain leaves the bloc, face the threat of losing their right to fly within the bloc after Brexit due to share ownership rules. About 20pc of Ryanair’s shares are owned by UK nationals, and the airline has previously announced plans to deal with a hard Brexit.

“We will place restrictions on the voting rights and share sales of non-EU shareholders for a period of time [in the event of a hard Brexit] to ensure that Ryanair remains at all times an EU-owned and EU-controlled airline, even if the UK exits the EU without a deal,” said Ryanair chief executive Michael O’Leary earlier this month.

IAG, which also owns British Airways, Iberia, Vueling and Level, said that there was no assurance if and when the limit on non-ownership in its shares would be lifted or amended.

It said that any IAG shares acquired after the date of its notice on Monday would be treated as “affected shares”.

Owners of those shares will have their voting and other rights suspended, and will be required to sell the shares within 10 business days, or IAG may acquire the shares.

European Commission sources told Reuters that Brussels encouraged IAG and all airlines concerned to check with the national licensing authorities whether they would still meet the operating licence requirements in case of a hard Brexit.

IAG is registered in Spain and has its corporate headquarters in Britain.

Affected shares will have voting and other rights suspended and be required to sell up