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RYA Ryanair Holdings Plc

14.415
0.00 (0.00%)
Last Updated: 00:00:00
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Ryanair Holdings Plc LSE:RYA London Ordinary Share IE00BYTBXV33 ORD EUR0.006 (CDI)
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 14.415 14.40 14.41 0.00 00:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
0 0 N/A 0

Sweden, Norway Put Airline on Privatization Runway

13/10/2016 10:20am

Dow Jones News


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STOCKHOLM—Sweden and Norway reduced their stakes in Scandinavian airline SAS AB, saying the state-controlled carrier would perform better in private hands.

The Swedish government reduced its stake to 17.1% from 21.3%, while the Norwegian government lowered its stake to 11.5% from 14.2%. Denmark retains a 14.2% stake in the airline.

"There are no good reasons why the state should own an airline," Norwegian Economics Minister Monica Maeland said on Thursday. "The government has been clear that the company will benefit other owners than the Norwegian government and the transaction contributes to this," Ms. Maeland added.

SAS, long majority-owned by the government's of Sweden, Norway and Denmark, has endured turbulent times in recent years amid fierce competition from budget airlines—among them Ryanair Holdings PLC and Norwegian Air Shuttle A/S—providing extra capacity and low fares for the regional market.

The company swung back to profit last year, helped by cost reductions and lower fuel prices.

But SAS hasn't taken part in the consolidation of the European airline sector. That has led to mergers among surviving national carriers to create Air France-KLM SA, British Airways-parent International Consolidation Airlines Group PLC and an enlarged Deutsche Lufthansa AG which owns the national carriers of Austria and Switzerland.

Swedish Enterprise and Innovation Minister Mikael Damberg said the reduction in state ownership was a natural step given SAS's performance would be enhanced by a change of ownership.

"There are good reasons for the Swedish state won't be long-term owners of a listed airline," Mr. Damberg said. "SAS's long-term will be strengthened by a new ownership structure that involves a reduction of state ownership. The sale is the first step in a gradual and responsible disposal of the Swedish and the Norwegian state's ownership."

The two governments said a total of 23 million ordinary shares have been sold to institutional investors, a figure that was increased from an original plan to sell 19 million shares after seeing strong investor demand, at a price of 15.50 Swedish kronor ($1.75) a share.

Sweden sold 13.8 million shares, booking the government 213.9 million Swedish kronor ($24.1 million) in proceeds. Norway sold 9.2 million shares for SEK142.6 million. Denmark didn't take part in the share sale.

Write to Dominic Chopping at dominic.chopping@wsj.com

 

(END) Dow Jones Newswires

October 13, 2016 05:05 ET (09:05 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.

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