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FL Group sheds its 16.7% stake in EasyJet
By Kevin Done, Aerospace Correspondent
Financial Times | Published: April 4 2006 22:31 | Last updated: April 4 2006 22:31
FL Group, the Icelandic investor, on Tuesday moved to sell its 16.7 per cent stake in EasyJet, ending the threat of a takeover bid for the UK low-cost airline. It meanwhile raised its stake in Finnair, the Finnish state-controlled carrier to 10.03 per cent.
JPMorgan, the US investment bank, launched a book-building exercise to sell about 68m shares in EasyJet for between 340p and 343p, valuing the holding at about £231m. EasyJet’s share price closed – before news of the FL Group offer to sell – 1¼p higher at 358p.
The FL group stake-building in EasyJet had helped to push up the price amid repeated talk about a possible takeover bid. The price peaked at 411p in January when the UK airline said it had appointed Goldman Sachs as financial adviser in a move seen as a means of strengthening its defences against a hostile takeover.
FL Group, which owns Icelandair, the Icelandic flag carrier, made its first raid on EasyJet in October 2004, shortly after the share price of the UK airline had fallen to an all-time low of 118p. FL Group has been rapidly expanding its aviation interests. Last year it bought Sterling, the Copenhagen-based carrier.
But the group’s stock has dropped more than 30 per cent since peaking in February, amid concern about Iceland’s overheating economy. Yesterday, its shares fell 5.4 per cent to IKr19.20 as the Icelandic stock exchange suffered its worst one-day loss in 13 years.
At 16.7 per cent, FL Group was already rivalling Stelios Haji-Ioannou, the founder of EasyJet, whose wholly owned EasyGroup holds 16.6 per cent. Mr Haji-Ioannou’s brother and sister each hold stakes of 12.02 per cent, giving the family a combined stake of just under 41 per cent.
By Kevin Done, Aerospace Correspondent
Financial Times | Published: April 4 2006 22:31 | Last updated: April 4 2006 22:31
FL Group, the Icelandic investor, on Tuesday moved to sell its 16.7 per cent stake in EasyJet, ending the threat of a takeover bid for the UK low-cost airline. It meanwhile raised its stake in Finnair, the Finnish state-controlled carrier to 10.03 per cent.
JPMorgan, the US investment bank, launched a book-building exercise to sell about 68m shares in EasyJet for between 340p and 343p, valuing the holding at about £231m. EasyJet’s share price closed – before news of the FL Group offer to sell – 1¼p higher at 358p.
The FL group stake-building in EasyJet had helped to push up the price amid repeated talk about a possible takeover bid. The price peaked at 411p in January when the UK airline said it had appointed Goldman Sachs as financial adviser in a move seen as a means of strengthening its defences against a hostile takeover.
FL Group, which owns Icelandair, the Icelandic flag carrier, made its first raid on EasyJet in October 2004, shortly after the share price of the UK airline had fallen to an all-time low of 118p. FL Group has been rapidly expanding its aviation interests. Last year it bought Sterling, the Copenhagen-based carrier.
But the group’s stock has dropped more than 30 per cent since peaking in February, amid concern about Iceland’s overheating economy. Yesterday, its shares fell 5.4 per cent to IKr19.20 as the Icelandic stock exchange suffered its worst one-day loss in 13 years.
At 16.7 per cent, FL Group was already rivalling Stelios Haji-Ioannou, the founder of EasyJet, whose wholly owned EasyGroup holds 16.6 per cent. Mr Haji-Ioannou’s brother and sister each hold stakes of 12.02 per cent, giving the family a combined stake of just under 41 per cent.
