It seems that the attraction of Norwegian Air Shuttle is wearing thin on International Airline Group with them releasing a statement today.
Norwegian Boeing 737 MAX 8 at Dublin Airport – Image, Economy Class and Beyond.
“UPDATE ON NORWEGIAN AIR SHUTTLE ASA
International Airlines Group (IAG) confirms that it does not intend to make an offer for Norwegian Air Shuttle ASA (Norwegian) and that, in due course, it will be selling its 3.93 per cent shareholding in Norwegian.
Meanwhile, Norwegian released a statement via Twitter
Regarding IAG’s announced plans to sell NAS stock: “Norwegian’s plans and strategy remain unchanged. The company’s goal is to continue building a sustainable business to the benefit of its customers, employees and shareholders,” said Chairman of the Norwegian Board, Bjørn Kise.
— Norwegian (@Fly_Norwegian) January 24, 2019
What next?
It’s interesting watching some of the issues that Norwegian have had in terms of capital recently – but a lot more interesting that IAG Group is dropping the investment now. Originally the investment made was valued at 4.61 per cent shareholding – when it brought into Norwegian in April 2018. This appears to have been diluted to 3.93 per cent as a result of subsequent share offerings issued by Norwegian during the first half of 2018.
Has IAG lost interest? Maybe. With IAG taking an interest, an offer to take of the company may had been put on the table – at least twice. Both times Norwegian rebuffed the offer
The share price in Norwegian has dropped already according to RTE after IAG made it’s intentions clear.
One thing is for certain – the Norwegian Air Shuttle story has a long way to go yet.
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