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IAG considering Norwegian Air takeover
Posted on Thursday, 12 April 2018 13:43
Norwegian Air Shuttle’s market capitalisation flew to NOK 10.22 billion (EUR 1.06 billion) today as International Consolidated Airlines (IAG) revealed it is mulling a bid for the Oslo Stock Exchange-listed low-cost airline operator.
The suitor said in a press release that it had purchased a 4.6 per cent holding in the target in order to start negotiations for the remaining stake but stressed an offer was yet to be tabled.
IAG emphasised there is no guarantee that talks, which are yet to begin, would lead to a deal and stated further announcements would be made as necessary.
Trading of Norwegian Air’s shares was halted on the back of the news but, when it resumed, the price of stock rose to NOK 264.10 at 10:44 GMT, soaring 47.3 per cent from yesterday’s close of NOK 179.30.
A spokesperson for the firm verified to the Independent there were no discussions yet and claimed “IAG’s interest in the company confirms the sustainability and potential of our business model and global growth”.
Founded in 1993, the Oslo-headquartered business is now the third-largest budget airline in Europe, beaten to the title by Ryanair and easyjet.
However, in contrast to these top two operators in the sector, Norwegian Air has a growing long-haul service, offering low-cost flights to the US, Buenos Aires and Singapore.
IAG is one of the biggest airlines in the world, with 547 planes flying 105.00 million passengers to 268 destinations annually.
It already owns British Airways and Aer Lingus and, in 2017, established its first budget long-haul airline, Level, which will start flights from Paris in July 2018.
The Madrid-based group reported profit after tax of EUR 2.02 billion and revenue of EUR 22.97 billion for the year ended 31st December 2017.
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