Just recently, Ryanair made a statement that it would like to make a new offer on Aer Lingus. This now marks the third time in at least six years that Ryanair has attempted to buy this airline. The move also comes although Ryanair’s previous attempt was blocked on the grounds that it would hurt competition.
Ryanair made this big announcement at the close of the stock market on Tuesday. It said that it was willing to offer the company €1.30 per share in an all-cash bid for the Irish flag carrier. This would put the value of Aer Lingus at €694 million, which is the same as £560 million.
Of course, this deal from Ryanair seems to be a good one. In fact, it represents a 38.3 percent premium on the airline’s current 94 cent closing price. Aer Lingus has refused to say anything about this deal as of now. However, it is expected to make some kind of statement by the end of the week.
Ryanair went on to say it believes the trading environment for aviation has changed since the last time that they made a bid for Aer Lingus. In fact, the chief executive of Ryanair, Michael O’Leary, said that he believes that the bid for €1.30 now offers the carrier’s long-suffering shareholders a meaningful and real return. Aer Lingus has failed to provide shareholders with the value that they want since the first unsuccessful bid nearly six years ago. The offer from Ryanair is the best way for the airline to continue to be owned, controlled and managed from Ireland.