(Alliance News) - Ryanair Holdings PLC and Wizz Air Holdings PLC early Tuesday confirmed that UK shareholders will have little or no say in the running of the two European budget airlines, starting from Friday.
Dublin-based Ryanair Holdings said it "must take steps" to ensure that it will remain majority EU owned and controlled following the end of the Brexit transition period.
The Irish carrier said it will treat all shares held by non-EU nationals, including UK nationals, as restricted shares from Friday. This means the holders of the shares will not be entitled to attend, speak or vote at any general meeting.
Ryanair also said it will extend its existing prohibition on non-EU nationals buying ordinary shares to apply to Britons. It said UK nationals will not be required to sell shares they already own, but they will lose all say in the running of the company.
EU nationals including nationals of EU member states, plus Switzerland, Norway, Iceland and Liechtenstein.
Meanwhile, Budapest-based Wizz Air said it will issue restricted share notices to UK shareholders on Tuesday.
Wizz Air Hungary Ltd, a wholly-owned subsidiary of the company, is the holder of an operating licence issued by the Hungarian Civil Aviation Authority, which allows Wizz to operate flights throughout the EU. Wizz Air UK Ltd already meets the equivalent requirements for UK air carriers, the company said.
Wizz Air said that without any action, from Friday, the company would be 80% owned by non-qualifying nationals. It expects to serve restricted share notices in respect of around 60% of the ordinary shares. It said an equal proportion of each non-qualifying national's shares will be restricted in order to be fair.
It said shareholders will be able to object to the notices if they believe their shares shouldn't be treated as restricted shares, and Wizz Air said it has the power to withdraw individual notices.
Other London-listed carriers have taken similar actions.
At the start of 2019, International Consolidated Airlines Group SA set the maximum number of its shares that can be held by non-EU nationals at 47.5%. IAG owns British Airways, Ireland's Aer Lingus and Spain's Iberia and Vueling.
Ryanair was down 0.2% at EUR16.38 in London early Tuesday, while Wizz Air was up 1.4% at 4,776.00 pence. IAG was up 3.7% at 169.44p.
By Tom Waite; thomaslwaite@alliancenews.com
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Wizz Air (WIZZ)
International Airlines (IAG)
