Budget airline Norwegian rejected not one but two takeover offers from Aer Lingus's parent
IAG has been circling the Scandi carrier in recent times.
BUDGET AIRLINE NORWEGIAN Air Shuttle said it has rejected two separate takeover offers from Aer Lingus’s parent, International Airlines Group (IAG).
The low-cost carrier issued a brief statement to confirm that it has “received two separate conditional proposals” from the airline group – headed up by Irishman Willie Walsh – in relation to an acquisition of 100% of Norwegian’s shares.
“These proposals were received in conjunction with (Norwegian’s) financial and legal advisers, and were unanimously rejected on the basis that they undervalued (the airline) and its prospects.
“The board of NAS (Norwegian Air Shuttle) remains fully committed to delivering on its stated strategy, for the benefit of all NAS shareholders.”
In April, it was reported that IAG bought a 4.6% stake in Norwegian to test the waters for a full-on acquisition.
At the time, Norwegian’s chief executive, Bjørn Kjos, said the airline was not for sale and a full buyout deal was reportedly valued at $3 billion including debt.
As previously reported by Fora, the Oslo-based carrier – which operates cheap transatlantic flights from Ireland through Dublin subsidiary Norwegian Air International – said it received “several inquiries” after IAG bought the minority stake.
The airline made the announcement as part of its financial results for the first three months of this year, when its losses before interest and taxes deepened by almost a third year-on-year to 2.2 billion Norwegian kroner (€227 million).
IAG results
Separately, IAG released its financial results for the first quarter, reporting an operating profit of €280 million, up from €160 million during the same three-month period last year and ahead of Goodbody stockbroker’s prediction of €226 million.
It generated total sales of €5 billion during the period. Passenger load factor – a key metric that measures the number of seats filled on a flight – rose 1.5 percentage points to 80.5%.
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As well as owning Aer Lingus, IAG is the parent of British Airways, Iberia and Vueling.
It has commented little on its bid for Norwegian but said in a presentation slide accompanying its quarterly results that it is “currently considering its options” in relation to the airline.
