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IAG Shares - non-EU Persons must sell.

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supremetwo
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IAG Shares - non-EU Persons must sell.

#201848

Postby supremetwo » February 16th, 2019, 10:37 pm

First I have heard of any restriction in share holdings for non-EU investors.

Is this peculiar to IAG or applicable to all EU companies?

https://www.sharesmagazine.co.uk/news/m ... reholdings

On 11 February 2019, the share register of International Consolidated Airlines Group, S.A. ("IAG" or the "Company") shows that ownership of the Company's issued shares by Relevant Non-EU Persons has reached 47.5 per cent.

IAG's Board has decided that, due to the level of share ownership by Relevant Non-EU Persons, it is necessary to specify a maximum aggregate number of Relevant Non-EU Shares under Article 11.8(b) of the Company's bylaws ("Permitted Maximum").
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Any Affected Share Notice will specify that: (i) the voting rights and other political rights (including, but not limited to, the right to attend and speak at shareholders' meetings) attaching to such shares shall be suspended; and (ii) the Relevant Non-EU Person on whom the Affected Share Notice is served shall be required to dispose of the relevant shares within ten (10) Business Days of receipt of such notice so that no Relevant Non-EU Person holds, directly or indirectly, or has an interest in such shares.


If only EU persons are able to invest in such companies, this non-international market might limit growth in the share price.

Spet0789
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Re: IAG Shares - non-EU Persons must sell.

#201852

Postby Spet0789 » February 16th, 2019, 10:56 pm

It’s specific to airlines.

Any airline must be majority owned by shareholders from its country of incorporation and from where it derives its rights to fly. For IAG (a Spanish company) that’s the EU.

All part of the Brexit dividend.

Project Reality.

dspp
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Re: IAG Shares - non-EU Persons must sell.

#202021

Postby dspp » February 18th, 2019, 9:29 am

In the case of IAG it may cause the group to break up as the UK-usa airline deal requires Ba to be 51% British owned.

Welcome to reality!

Dspp

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Re: IAG Shares - non-EU Persons must sell.

#202033

Postby JohnB » February 18th, 2019, 10:31 am

And that will affect tiddly shareholders like my Mum who bought floatation share decades ago. I hope they offer to buy her out with no trading fees, so I can avoid the fiddly Spanish tax on her tax return.

Surely if its 47% now , it will shoot up after the the Brexit disaster. And I see its part of the FTSE 100. How can it remain so if Brits can't buy it?

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Re: IAG Shares - non-EU Persons must sell.

#202124

Postby odysseus2000 » February 18th, 2019, 3:03 pm

Spet0789 wrote:It’s specific to airlines.

Any airline must be majority owned by shareholders from its country of incorporation and from where it derives its rights to fly. For IAG (a Spanish company) that’s the EU.

All part of the Brexit dividend.

Project Reality.


Getting a bit confused here.

Can country of incorporation be the same as the political union of the EU?

If this is the case then no letters can go out until the UK leaves the EU as until then the UK remains part of the EU, or am I misunderstanding, especially as earlier in the thread comments about:

In the case of IAG it may cause the group to break up as the UK-usa airline deal requires Ba to be 51% British owned.


Is this connected with IAG or separate? I thought BA has become IAG so I am not sure what country matters re ownership.

Or is the IAG statement about ownership by non EU nations.

Just trying to get things straight in my own mind and I am now very confused.

Regards,

Spet0789
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Re: IAG Shares - non-EU Persons must sell.

#202128

Postby Spet0789 » February 18th, 2019, 3:31 pm

odysseus2000 wrote:
Spet0789 wrote:It’s specific to airlines.

Any airline must be majority owned by shareholders from its country of incorporation and from where it derives its rights to fly. For IAG (a Spanish company) that’s the EU.

All part of the Brexit dividend.

Project Reality.


Getting a bit confused here.

Can country of incorporation be the same as the political union of the EU?

If this is the case then no letters can go out until the UK leaves the EU as until then the UK remains part of the EU, or am I misunderstanding, especially as earlier in the thread comments about:

In the case of IAG it may cause the group to break up as the UK-usa airline deal requires Ba to be 51% British owned.


Is this connected with IAG or separate? I thought BA has become IAG so I am not sure what country matters re ownership.

Or is the IAG statement about ownership by non EU nations.

Just trying to get things straight in my own mind and I am now very confused.

Regards,


In the case of air travel, the EU is considered as a single country and negotiates with other countries as such. So for other countries to recognise an airline as an EU airline it must be majority-controlled by EU investors.

IAG is a Spanish holding company which owns controlling stakes in Aer Lingus, Iberia and BA among others.

There are two specific problems here. First, for the sake of Aer Lingus and Iberia’s rights to fly to non-EU countries, IAG must be majority controlled by EU investors. Second, for BA’s rights to fly to non-U.K. countries post Brexit, BA (a subsidiary of IAG) must be majority controlled by U.K. investors.

I think the announcement is an attempt to get in front of the problem by pushing out shareholders who definitely won’t qualify (ie non EU27 and non U.K.). In April they may need a further announcement to push out UK shareholders.

If you think this is complicated, I agree. I hope I’ve understood it but am happy to be corrected.

Moral of the story - anyone who doesn’t understand a massively complex and impactful proposed change shouldn’t vote for it. You seem a thoughtful person. I hope you voted accordingly three summers ago.

Project Reality.

JohnB
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Re: IAG Shares - non-EU Persons must sell.

#202135

Postby JohnB » February 18th, 2019, 3:59 pm

The BBC news (will more airlines fail) mentions IAG and says UK will be honorary Europeans for this. I'd rather we were real Europeans.


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