29th Dec 2020 08:13
(Alliance News) - Ryanair and Wizz Air early Tuesday confirmed that UK shareholders will little or no say in the running of the two European budget airlines, starting from Friday.
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.
Wizz Air said it will issue restricted share notices to UK shareholders on Tuesday.
The company said this is because UK nationals will no longer be treated as qualifying nationals in relation to ongoing European airline ownership requirements from January 1. 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 Wizz requires to operate flights within the EU.
Wizz Air said that as a result and without any action, from that date, 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.
Ryanair was down 0.4% in London early Tuesday, while Wizz Air was up 0.2%.
Here is what you need to know at the London market open:
----------
MARKETS
----------
FTSE 100: up 1.7% at 6,610.19
----------
Hang Seng: up 1.0% at 26,567.94
Nikkei 225: closed up 2.7% at 27,568.15
DJIA: closed up 204.10 points, 0.7%, at 30,403.97
S&P 500: closed up 0.9% at 3,735.36
----------
GBP: down at USD1.3501 (USD1.3587)
EUR: up at USD1.2250 (USD1.2197)
Gold: up at USD1,878.31 per ounce (USD1,874.60)
Oil (Brent): up at USD51.22 a barrel (USD50.74)
(changes since London equities close on Christmas Eve)
----------
ECONOMICS AND GENERAL
----------
Tuesday's Key Economic Events still to come
0830 EST US international investment position
0855 EST US Johnson Redbook retail sales index
0900 EST US S&P CoreLogic Case-Shiller indices
1630 EST US API weekly statistical bulletin
----------
Labour leader Keir Starmer is facing a high-profile revolt over his decision to back UK Prime Minister Boris Johnson's EU trade deal in this week's Commons vote. Former shadow chancellor John McDonnell and ex-cabinet minister Ben Bradshaw are among the signatories to a statement calling on opposition parties not to support the "rotten" agreement, The Guardian reported. Starmer has said that he will call on Labour MPs to support the "thin" post-Brexit free trade agreement, despite misgivings that it would fail to protect many key economic sectors. He argued, however, that the alternative of ending the Brexit transition period on December 31 without a deal in place would be even worse for the economy.
----------
The Democratic-controlled US House of Representatives has voted to override Donald Trump's presidential veto of a defence policy bill. House members voted 322-87 to cancel the veto, well above the two-thirds needed to override. If approved by two-thirds of the Senate, the override would be the first of Trump's presidency. Trump rejected the bill last week, saying it failed to limit social media companies he claims were biased against him during his failed re-election campaign. Trump also opposes language that allows for the renaming of military bases that honour Confederate leaders.
----------
The US House of Representatives has voted to increase Covid-19 relief cheques in the country to USD2,000, meeting President Donald Trump's demand for bigger payments and sending the bill to the Republican-controlled Senate, where the outcome is uncertain. Democrats led passage of the motion, by 275-134, their majority favouring additional assistance. They had earlier settled for smaller USD600 payments in a compromise with Republicans over the big year-end relief bill Trump reluctantly signed into law. The vote divides Republicans who mostly resist more spending, although many House Republicans joined in support, wary of opposing the president's wishes. Senators are set to return to session on Tuesday to consider the measure, with stiff resistance expected.
----------
BROKER RATING CHANGES
----------
none reported
----------
COMPANIES - FTSE 100
----------
Admiral Group said it has reached an agreement with ZPG Comparison Services Holdings UK's RVU business over the sale of the insurer's Penguin Portals and Preminen comparison businesses for a total of GBP508 million. Penguin Portals is made up of online comparison portals Confused.com, Rastreator.com and LeLynx.fr, technology operations Admiral Technologies and its 50% share of Preminen Price Comparison Holdings. Admiral expects net proceeds of around GBP450 million, with a majority of this to be returned to shareholders.
----------
AstraZeneca said Monday its Lynparza cancer treatment has secured approval in Japan for the treatment of advanced ovarian, prostate and pancreatic cancers. Astra jointly develops and commercialises the drug with US pharmaceutical company Merck & Co Inc. The pair signed a global strategic oncology collaboration to co-develop and co-commercialise Lynparza in July 2017. The concurrent approvals by the Japanese Ministry of Health, Labour & Welfare are based on positive results from the PAOLA-1, PROfound and POLO Phase III trials, which, Astra noted, were published in The New England Journal of Medicine.
----------
COMPANIES - MAIN MARKET AND AIM
----------
THG Holdings said it has agreed to acquire US-based online skincare and specialty beauty brands retailer Dermstore.com, for USD350 million in cash from retailer Target Corp, subject to US regulatory approval. THG said the Dermstore.com acquisition provides the opportunity to accelerate the growth of its own beauty brands via a new and large US customer base. In addition, THG acquired two of its long-standing UK-based nutrition product suppliers, Claremont Ingredients Ltd and David Berryman Ltd, for a combined purchase price of GBP59.5 million in cash. "Together these acquisitions will enable THG to significantly accelerate the launch of further product innovation to global markets, while increasing the proportion of THG Nutrition products wholly manufactured in-house," said Chief Executive Matthew Moulding.
----------
COMPANIES - GLOBAL
----------
Hardware retailer Home Depot said Monday it has completed the acquisition of wholesale distributor HD Supply Holdings for USD8 billion. Nasdaq-listed HD Supply operates distribution centres in the US and Canada and was formerly a unit of Home Depot before being sold in 2007. The home improvement retailer said the deal will position it as a "premier provider" in the "highly fragmented" maintenance, repair & operations market, which Home Depot estimates at USD55 billion.
----------
Tuesday's Shareholder Meetings
Altitude Group PLC - GM re annual report, related matters
Ethernity Networks Ltd - EGM re cash conservation measures
China Nonferrous Gold Ltd - AGM
Eddie Stobart Logistics PLC - GM re proposed conversion to investing company
Flutter Entertainment PLC - GM re Fanduel stake acquisition
----------
By Tom Waite; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
Wizz AirRYA.L