Forced to sell shares in Airlines
Thread Starter
Forced to sell shares in Airlines
https://www.rte.ie/news/business/201...xit-aftermath/
"Many European airlines such as Ryanair, IAG and Wizz already have clauses in their articles of association that mean they can force non-EU shareholders to sell their shares in order to ensure that EU investors retain a majority. "
Interesting that UK shareholders may find that they are forced to sell their shares in Airlines post Brexit to keep Airlines over the 50% EU ownership limit.
This could get very messy for Employees and Pension funds.
"Many European airlines such as Ryanair, IAG and Wizz already have clauses in their articles of association that mean they can force non-EU shareholders to sell their shares in order to ensure that EU investors retain a majority. "
Interesting that UK shareholders may find that they are forced to sell their shares in Airlines post Brexit to keep Airlines over the 50% EU ownership limit.
This could get very messy for Employees and Pension funds.
The shareholdings of employees by virtue of current or past employment are in most cases relatively minor - it's the pension funds and general-investor-focussed fund managers that company secretaries will worry about.
If company secretaries make known their intended policy to the likes of FTSE, MSCI and S&P, it is likely that these airlines may drop out of pan-European or global fund indices and the non-EU big passive tracker fund managers will then end up being forced into selling their holding in these airlines anyway
If company secretaries make known their intended policy to the likes of FTSE, MSCI and S&P, it is likely that these airlines may drop out of pan-European or global fund indices and the non-EU big passive tracker fund managers will then end up being forced into selling their holding in these airlines anyway
This will mainly affect airlines registered in the EU27 as London is such a major investment hub, and responsible for huge amounts of funds.
If the EU don't do anything to mitigate this, the share prices of EU listed stocks with such restrictions are likely to fall.
If the EU don't do anything to mitigate this, the share prices of EU listed stocks with such restrictions are likely to fall.
Thread Starter
IAG is likely to be one with a big issue as only 24% of its shareholders are EU citizens.
As highlighted on anotehr thread is Stelios decides he is British then Easyjet have a problem as he holds 33% of shares.
It is likely to add volatility to the share prices as UK managed funds will have their holdings controlled plus it means takeover and mergers can only occur in EU countrys.
