22nd Mar 2019 08:09
LONDON (Alliance News) - easyJet PLC on Friday said it continues to "stand ready" to activate its no-deal Brexit contingency plan which will see the suspension of some shareholders' rights.
The FTSE 100 budget airline said that in the case of a disorderly exit of the UK from the European Union, it will suspend the voting rights of a "small number of shares". This will be done to shares held by non-EU shareholders, including UK nationals, on a last-in-first-out basis.
For the period of suspension, the affected shareholders will not be permitted to attend, speak or vote at meeting of the company.
The plan is needed to ensure easyJet's compliance with EU ownership and control requirements, to allow the airline to continue flying across the bloc.
Currently, easyJet's EU ownership, excluding the UK, stands at 49.9%, below the 50% plus 1 share which will be required after Brexit to comply with EU rules.
Earlier in March, airline peer Ryanair Holdings PLC implemented a similar plan among its resolutions to protect the company in the case of a no-deal Brexit.
Ryanair decided that all shares held by non-EU shareholders, including UK ones after Brexit, will be treated as "restricted shares", meaning that they will have no entitlement to attend, speak or vote at any company meeting.
Furthermore, Ryanair added that the prohibition on non-EU nationals to acquire shares, announced in 2002, continues to apply.
Related Shares:
RYA.LeasyJet